Supply of Bouquet made with Dry Plant Parts with Foil Package Exempted from GST: AAR [Read Order]

The West Bengal Authority for Advance Ruling (AAR) has held that the supply of bouquets made with dry plant parts with foil packages would be exempted from Goods and Service Tax (GST).

The applicant Shopin shop Franchise Pvt. Ltd is a company engaged in manufacturing and processing of dry parts of plants, foliage, flower buds, grasses and branches of plant which were dried, bleached, dyed and coloured for decorative and ornamental purposes and sold as bouquets made with dried parts of plants and packed in plastic foil packaging.

The applicant has sought whether GST would be applicable to above mentioned supply. That is whether the bouquets made with dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging would be considered as “Exempt supply” under GST as covered under HSN code 06049000. 

The applicant has also sought whether Sl. No. 34 of Notification No. 02/2017-CT dated 28/06/2017 covers “Bouquets” made from dry parts of plants, foliage, flower buds, grasses and branches of plant which are dried, bleached, dyed and coloured for decorative and ornamental purposes and is therefore exempt from GST.

Dilip Doshi who appeared for the applicant, submitted that supply of the aforesaid goods was exempted from payment tax vide serial number 34 of Notification No.2/2017-Central Tax dated 28.06.2017. He further submitted that the bouquet made from dry parts of plants and dry flowers would be covered under HSN 0604 and supply of such goods would be treated as exempt supply.

 The Authority for Advance Ruling of Brajesh Kumar Singh (Joint Commissioner- CGST) and Joyjit Banik (Senior Joint Commissioner-SGST) observed that the Bouquet made with dry parts of plants, foliage, flower buds, grasses and branches of plant which were dried, bleached, dyed and coloured for decorative and ornamental purposes and sold with plastic foil packaging would be classifiable under Tariff Item Nos. 06039000 or 06049900,

The authority further held that the aforesaid goods would be exempted from payment of tax vide serial number 34 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017.

To Read the full text of the Order CLICK HERE

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