Order Date – 13 April 2023

Key Pointers – 

• The Applicant, M/s. Criyagen Agri & Biotech Private Limited have been manufacturing Agro inputs like organic manures, Biofertilisers and Fertilisers since 2008; they are pioneers in inventing new products for sustainable agriculture; they have patents to their products namely BO’N and Bio-Phosphate, they are launching their new product “Bio-Phosphate”.
• The applicant contended during personal hearing that their product merits classification under HSN code 3101 0099 and accordingly attracts GST @ 5%.
• The issue involved here is whether the product Bio-Phosphate is classifiable under HSN code 3101 0099?
• The AAR observed that Chapter 31 covers Fertilisers and the heading 3101 covers (i) Animal or Vegetable fertilisers whether or not together or chemically treated and (ii) fertilisers produced by the mixing or chemical treatment of animal or vegetable products. 
• In the instant case the impugned product is neither animal nor vegetable based fertilizer and also is not prepared by mixing or chemical treatment of animal or vegetable products but admittedly based on the Rock Phosphate. Thus, the impugned product does not cover under the heading 3101.
• It was further observed that the Heading 3103 covers Minerals or chemical fertilisers of phosphatic in nature. Further heading 3103 10 00 covers superphosphates and heading 3103 90 00 covers other phosphatic fertilisers. In the instant case the impugned product contains Rock Phosphate and thus it is a phosphatic in nature. Further it is not a superphosphate and thus it merits classification under heading 3103 90 00 and  thus are exigible to GST @ 5%, in terms of Sl.No. 182B of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended.