Herbal Cigarettes not Medicinal, 28% GST leviable: AAAR

The Appellate Authority for Advance Ruling (AAAR) ruled that herbal cigarettes are not considered medicinal and are therefore subject to a GST levy of 28%. The decision clarified that despite claims of herbal properties, these products do not meet the definition of medicinal products. Consequently, they fall under the general goods category, attracting the higher GST rate. This ruling impacts businesses dealing in herbal cigarettes and emphasizes the importance of classification in determining applicable tax rates. The decision aims to streamline tax application and prevent confusion regarding product classifications under GST.