AAR: Classifies ‘Nicotine’ based alternative for smokers under heading 38.24, taxable at 18%

Karnataka AAR classifies ‘Nicotine Polacriliex Lozenge’ (NCT) under heading 38.24, covered under Sr. No. 97 of Schedule III to Notification No. 01/2017-Central Tax(Rate), liable to GST at the rate of 18% (CGST+SGST); Notes that primary ingredient in NCT is nicotine which is mixed with various other ingredients to add colour, flavour, etc. and target customer base is addicted smokers who wish to give up or reduce smoking habit; Refers to Chapter Notes and Explanatory Notes...