GST: Here is an analysis of what judicial orders mean for businesses

With the multiple rate structure under GST, classification disputes are set to rise.

Since the roll-out of the GST regime in July last year, for businesses the transition to the new indirect tax regime has been a roller coaster ride. Recent pronouncements by the Authority for Advance Rulings (AAR), constituted in various states, have given some guidance on a few vexed issues. Here is an analysis of what these judicial orders mean for businesses 

Issue

Classification of skin care preparation as medicament under heading 3004 of the Customs Tariff Act, 1975 

[West Bengal-AAR(GST)]

Ruling

• Merely manufacturing a skin care preparation using an ayurvedic authoritative text book does not imply that the product is a medicament.
• Its curative and therapeutic