Protein Powder can be classified under HSN 3004, 12% GST applicable: AAR [Read Order]

Protein Powder - GST - Taxscan

The Himachal Pradesh Authority for Advance Ruling (AAR) ruled that Protein Powder with Vitamins and minerals manufactured by the applicant can be classified under HSN code 3004. Hence 12% Goods and Services Tax ( GST ) applicable.

The ruling was made by the bench consisting of Shri Rakesh Sharma, and Shri Abhay Gupta on an application made by M/s Newtramax Healthcare.

The applicant is a registered person engaged in the manufacture and supply of Pharmaceutical formulations. The applicant has valid license to manufacture for sale or distribution of drugs specified in Schedule – C and Schedule C1 of the Drugs and Cosmetics Act, 1940.

The applicant contended that goods i.e. Protein Powder with Vitamins and Minerals being manufactured by him fall under the drugs category under HSN 3004 as these are being manufactured under a valid drug license after obtaining necessary approvals from the competent authority. He further pointed out that the other manufacturers under similar conditions i.e. with a valid drug license and with necessary approvals from the appropriate drug authorities are classifying the goods under HSN 3004.

The Authority ruled that, “all the goods being manufactured by the applicant which are mentioned (including the goods mentioned at Sr. No. 20 an and 21) in the license of the drug issued to the applicant by the competent authority and have the labels as per the standards prescribed under the Drugs and Cosmetics Act, 1940 can be class under hs code 3004.”

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