18% GST is applicable on Mehendi and Henna Powder

The Rajasthan bench of the Authority of Advance Ruling has held that the supply of Mehendi /Henna powder will attract GST at the rate of 18% viz. CGST 9% and SGST 9%. The applicant, a manufacturer of hair dye powder, sought out an advance ruling as they wish to start manufacturing henna-based hair dye powder and wanted to understand the rate of GST that would be applicable on supply of such a product. The applicant wished to clarify whether henna is classifiable under chapter 14 or 33.

The Rajasthan bench of the AAR held that Henna/Mehendi powder has a natural property of dye/tanning and is generally used as hair dye. The product, as per chapter heading 3305, falls under the category of preparations for use on the hair and covered under amended Notification No. 41/2017-Central Tax (Rate) dated November 14, 2017, of the principal notification no. 01/2017-Central Tax (Rate) dated 28.06.2017. Hence, it attracts a GST rate of 18% viz. CGST 9% and SGST 9%.