Order Date – 09 February 2023

Key Pointers –

• The Applicant, Shopinshop 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 are 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 issue involved here is whether the bouquets would be considered as “Exempt supply” under GST as covered under HSN code 06049000?
• The AAR observed that Heading 0603 deals with “Cut Flowers and Flower Buds of a Kind Suitable for Bouquets or for Ornamental Purposes, Fresh, Dried, Dyed, Bleached, Impregnated or Otherwise Prepared” (emphasis supplied). Therefore, the applicant’s final product i.e. Bouquet, made with “Dried and/or Dyed” flower buds will be classifiable as “Other” under Tariff Item No. 06039000.
• It was held that Bouquet 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 will be classifiable under Tariff Item Nos. 06039000 or 06049900, depending on its constituents and supply of the aforesaid goods is exempted from payment of tax vide serial number 34 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, as amended [corresponding West Bengal state Notification No. 1126 F.T. dated 28.06.2017]