Hajmola, a popular product of Dabur known for its digestive properties, is back in the news as the Directorate General of GST Intelligence (DGGI) has issued a show-cause notice regarding the issue of classification. The issue is whether this should be treated as a normal candy or an Ayurvedic preparation.
Officials confirmed to businessline that show cause notice has been issued post completion of investigation. Earlier, a summon was issued to the company. They made certain submissions before the investigation. The issue is whether this is a normal candy or an Ayurvedic preparation. For normal candy, the GST rate is 18 per cent, while for Ayurvedic preparations, it is 12 per cent. Meanwhile, the company did not respond to latest development till the time of going to the press.
A similar issue was raised during the pre-GST regime when the Supreme Court in 2002 had dismissed an appeal filed by the Commissioner of Central Excise, Chandigarh, against a ruling by the erstwhile CEGAT (Central Custom, Excise & Gold Appellate Tribunal, now known as the Customs Excise and Service Tax Appellate Tribunal or CESTAT), which CEGAT reiterated that Hajmola Tablets are Ayurvedic medicines.
Read more at: The Hindu businessline
Share this content: