GST Classification of Mosquito Repellents: UP AAAR Ruling on Odomos
The Appellate Authority for Advance Ruling confirmed that mosquito repellent creams are classified as insecticides under HSN 3808, not as medicaments.
- Ruling
- Order No. 8/AAAR/2019 dated 19.08.2019
- Authority
- Appellate Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Dabur India Ltd asked if Odomos is a medicament or an insecticide.
- The authority ruled Odomos falls under HSN 3808 as a mosquito repellent.
- Classification depends on common use, not just drug license status.
In short
The company asked the Uttar Pradesh Appellate Authority for Advance Ruling (AAAR) to decide if their mosquito repellent, Odomos, should be taxed as a medicine or an insecticide under the Goods and Services Tax (GST) system.
What has changed
How it worked before
Businesses often assumed that if a product is regulated under the Drugs and Cosmetics Act, it should automatically be classified as a medicine for tax purposes.
What has changed
The authority decided that a product's primary function as a repellent takes priority over its regulatory status. In practice, this means mosquito repellents are taxed under the higher HSN 3808 category rather than the lower rates often applied to pharmaceuticals.
Who this affects
Manufacturers and distributors of mosquito repellent creams, lotions, or similar personal care products.
An example
Imagine a small business selling a herbal mosquito repellent cream. They might hope to classify it as a medicine to pay less GST. Based on this ruling, the tax department will likely look at how the product is marketed and used, rather than just its ingredients, and classify it as an insecticide.
What you should do
If you sell similar products, do not assume this ruling applies to your business. An advance ruling is only binding on the company that requested it and their specific tax officer; your local officer may hold a different view.
If you do nothing
If you classify your product as a medicine without a specific ruling in your favor, you risk a tax demand for the difference in rates. You may also face penalties and interest charges if an audit determines you have underpaid your GST. Always consult a professional before choosing a tax classification that differs from industry standards.
The terms explained
- HSN
- Harmonized System of Nomenclature is a code used to classify goods for tax and customs purposes.
- Medicament
- A substance used for the treatment or prevention of disease in humans or animals.
- Common parlance test
- A method where authorities decide how a product is classified based on how the general public understands and uses it in daily life.
The ruling in detail
Appellate Authority for Advance Ruling
M/s. Dabur India Ltd.
Order No. 8/AAAR/2019 dated 19.08.2019 · Uttar Pradesh
Questions before the authority
- Classification of the product Odomos being manufactured and supplied by them.
Facts
The applicant is a manufacturer of various Fast-Moving Consumer Goods, including the product Odomos. They sought an advance ruling on the correct classification of Odomos, which the original Authority for Advance Ruling classified under HSN 38089191. The applicant appealed this decision, contending that the product should be classified as a medicament under sub-heading 3004 90 99.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification of Odomos | Classified under HSN 38089191 Covered under Chapter 38 of the Customs Tariff Act |
The Appellate Authority for Advance Ruling upheld the original order, confirming that Odomos is correctly classified under Chapter 38 of the Customs Tariff Act. The authority rejected the applicant's contention that the product qualifies as a medicament, emphasizing its primary identity as a mosquito repellent.
Reasoning
The authority applied the **General Rules for the Interpretation of Import Tariff**, noting that specific headings are preferred over residual ones. It determined that the product is marketed and commonly understood as a mosquito repellent, rather than a medicine used to cure illness. The authority observed that the product's regulation under the Drugs and Cosmetics Act does not automatically confer the status of a medicament for tax classification purposes. It concluded that the **common parlance test** and the product's intended use as a repellent support classification under heading 3808.
Provisions relied on
- Section 99 of the Uttar Pradesh Goods and Service Tax Act, 2017
- Section 100 of the Central Goods and Service Tax Act, 2017
- Section 101 of the Central Goods and Service Tax Act, 2017
- Customs Tariff Act, 1975
- Drugs and Cosmetics Act, 1940
- Insecticides Act, 1968
For the practitioner
This ruling confirms that mosquito repellent creams are classified under **HSN 3808** rather than as medicaments under Chapter 30. It reinforces the principle that the **common parlance test** and the specific nature of the product's use take precedence over its regulatory status under the Drugs and Cosmetics Act. Practitioners should note that this decision limits the ability to claim lower tax rates applicable to pharmaceuticals for products primarily marketed as repellents.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/2024-02/up_aaar_08_2019-20_19.08.2019_dil.pdf
Legibility of the scan, as read: high.
Prepared 13-10-2026.
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