Rajasthan GST Advance Ruling RAJ/AAR/2023-24/06 on Tobacco Products
The Authority for Advance Ruling closed the application for Kasar Industries because the company withdrew its request before a decision was made.
- Ruling
- RAJ/AAR/2023-24/06 dated 30.06.2023
- Authority
- 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
- Kasar Industries asked about GST rates for tobacco mixed with lime.
- The company later requested to withdraw their application entirely.
- The Authority for Advance Ruling closed the case without a decision.
In short
Kasar Industries asked the Rajasthan Authority for Advance Ruling (AAR) to clarify the GST and Compensation Cess rates for their tobacco and lime mixture. Before the authority could decide, the company asked to withdraw their application due to a change in their business location. Because the request was withdrawn, the authority did not issue any ruling on how to tax this product.
What has changed
How it worked before
Businesses often look to advance rulings to understand how the tax department classifies specific products for GST purposes.
What has changed
Nothing changed because no ruling was issued. This order is purely a record that the application was cancelled, meaning there is no new guidance or tax precedent created by this document.
Who this affects
Businesses manufacturing tobacco products or similar mixtures who are seeking clarity on GST classification.
An example
Imagine a different tobacco manufacturer wants to know the GST rate for their own lime-mixed tobacco. They might search for this ruling hoping for an answer. Because this case was withdrawn, they will find no information here and must still consult their own tax advisor or file their own application if they need certainty.
What you should do
Do not rely on this document for tax planning. An advance ruling only applies to the specific business that asked the question, and since this case was withdrawn, it provides no legal guidance for anyone else.
If you do nothing
If you assume this document provides a tax rate for your product, you risk miscalculating your GST liability. A tax officer is not bound by a withdrawn application and may impose penalties or interest if you apply an incorrect rate based on a misunderstanding of this record.
The terms explained
- Advance Ruling
- A formal decision from the tax department that clarifies how GST laws apply to a specific business transaction.
- Compensation Cess
- An additional tax levied on certain luxury or sin goods, like tobacco, to compensate states for potential revenue losses.
- Precedential value
- The ability of a past legal decision to serve as a guide or rule for future similar cases.
The ruling in detail
Authority for Advance Ruling
M/s Kasar Industries
RAJ/AAR/2023-24/06 dated 30.06.2023 · Rajasthan
Questions before the authority
- Classification and applicable rate of GST and or Compensation Cess on the Tobacco pre mixed with lime packed in pouches under brand
Facts
The applicant intended to manufacture and supply a product named DHARIWAL, which consists of raw tobacco mixed with lime, aroma, and menthol. The manufacturing process involves mixing lime paste with raw tobacco, drying it in an auto plant, and processing it through vibrators and a coating plant before final packaging. The applicant sought an advance ruling on the classification and applicable GST/Compensation Cess rates for this product.
Ruling
The authority did not provide a ruling on the merits of the classification or taxability of the product. The application was disposed of as withdrawn because the applicant requested to withdraw the application due to a change in their business premises.
Reasoning
The applicant submitted a letter dated 07.06.2023 requesting to withdraw their Advance Ruling application. The authority acknowledged this request and concluded that since the applicant sought withdrawal, no ruling on the merits of the questions raised would be provided. Consequently, the proceedings were closed without a substantive decision on the classification or tax rate.
Provisions relied on
- Section 97(2) of the CGST/RGST Act, 2017
For the practitioner
This order serves as a procedural record of a **withdrawn application** and provides no guidance on the classification or taxability of tobacco products mixed with lime. It is of no precedential value for tax practitioners seeking clarity on the GST treatment of such goods.
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/AAR/raj_aar_06-2023_of_kasar_industries.pdf
Legibility of the scan, as read: high.
Prepared 17-10-2026.
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