GST on Heena Powder and Leaves- CBIC Clarification
On the basis of recommendations of the GST Council, the CBIC issued Circular No. 163/19/2021-GST dated 06th October 2021 clarifying on the issue of GST rates & classification of various goods & services including heena powder and leaves. The CBIC clarified as follows:
- Representations have been received seeking clarification regarding classification and applicable GST rates on heena powder and heena leaves.
- As per the Explanatory Notes to HS 2017, heading 1404 is vegetable products not elsewhere specified or included. Further, as per the said Explanatory Notes, heading 1404 includes raw vegetable materials of a kind used primarily in dyeing or tanning. Such products are used primarily in dyeing or tanning either directly or in preparation of dyeing or tanning extracts. The material may be untreated, cleaned, dried, ground or powdered (whether or not compressed).
- Accordingly, it is clarified that pure heena powder and heena leaves, having no additives, is classifiable under tariff item 1404 90 90 and shall attract GST rate of 5% (Sl. No. 78 of Schedule I of notification no. 1/2017- central tax (rate) dated 28.06.2017).
- Further, the GST rate on mehndi paste in cones falling under heading 1404 and 3305 shall be 5% (Sl. No. 78A of schedule I of notification no. 1/2017- central tax (rate) dated 28.06.2017).
Source: CBIC Circular No. 163/19/2021-GST
