Notification No. 10/2021 - UTTR GST Essential Oils Update

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Notification No. 10/2021 - Union Territory Tax (Rate): Seeks to amend notification No. 4/2017- Union territory Tax (Rate)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. (E).- In exercise of the powers conferred by sub-section (3) of section 7 of the UTGST Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.4/2017- Union Territory Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 713(E)., dated the 28^th June, 2017, namely:-

In the said notification, after S. No. 3 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:

" 3A.

33012400, 33012510, 33012520, 33012530, 33012540

Following essential oils other than those of citrus fruit namely: -
Of peppermint (Menthapiperita);
Of other mints :
Spearmint oil (ex- Mentha spicata),
Water mint-oil (Ex- Mentha aquatic),
Horsemint oil (ex- Mentha Sylvestris),
Bergamot oil (Ex-Mentha citrate).

Any Unregistered Person

Any Registered Person.";

2. This notification shall come into force on the 1st day of October, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No. 4/2017-Union Territory Tax (Rate), dated the 28^thJune, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 713(E), dated the 28^thJune, 2017 and was last amended by Notification No. 11/2018-Union Territory Tax(Rate) dated 28^thMay, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 505(E), dated the 28^thMay, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 10/2021 - Union Territory Tax (Rate)

Q1️⃣: What is Notification No. 10/2021 – Union Territory Tax (Rate)? 🧾

Answer:
This notification amends Notification No. 4/2017 – UTGST (Rate) to include a new category (S. No. 3A) for essential oils other than citrus fruit oils.
It defines GST rates and applicability for peppermint oil, spearmint oil, water mint oil, horsemint oil, and bergamot oil, ensuring consistent tax treatment for both registered and unregistered persons.
👉 For expert GST support, visit Finodha GST Professionals.

Q2️⃣: When did Notification No. 10/2021 come into effect? 📅

Answer:
The notification came into effect on 1st October 2021, providing clarity on the GST framework for mint-based essential oils under the Union Territory Goods and Services Tax Act, 2017.

Q3️⃣: Which earlier notification was amended? 🔄

Answer:
It amends Notification No. 4/2017 – Union Territory Tax (Rate), which originally prescribed GST rates on specific goods and services under the UTGST framework.

Q4️⃣: What new goods were added under this amendment? 🌿

Answer:
The following essential oils were added under Serial No. 3A:
✅ Peppermint Oil (HSN 33012400)
✅ Spearmint Oil (HSN 33012510)
✅ Water Mint Oil (HSN 33012520)
✅ Horsemint Oil (HSN 33012530)
✅ Bergamot Oil (HSN 33012540)
These oils are now governed under specific GST applicability provisions for trade and export.
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Q5️⃣: Who does this notification apply to? 👩‍💼👨‍💼

Answer:
This amendment applies to both unregistered and registered persons, meaning:
Unregistered individuals involved in small-scale mint oil production.
Registered traders or manufacturers exporting essential oils.
This dual applicability ensures inclusivity across the entire mint oil supply chain.
For registration help, visit Online GST Registration.

Q6️⃣: What legal provision empowers this amendment? ⚖️

Answer:
It is issued under sub-section (3) of Section 7 of the Union Territory Goods and Services Tax Act, 2017 (UTGST), which authorizes the Central Government to modify the rate of tax upon GST Council recommendations.

Q7️⃣: Why was this notification issued? 🎯

Answer:
The objective was to:
✅ Ensure tax uniformity for essential oils used in multiple industries (pharmaceuticals, cosmetics, aromatherapy).
✅ Clarify GST treatment for mint-based oils, which earlier faced classification ambiguity.
✅ Simplify compliance for small and medium enterprises in the aroma and cosmetic sectors.
For GST compliance and advisory, visit GST Compliance Services.

Q8️⃣: What industries are impacted by this amendment? 🏭

Answer:
Industries primarily affected include:
🌿 Aromatherapy and wellness,
💄 Cosmetic manufacturing,
💊 Pharmaceutical production, and
🚜 Agricultural extractors of mint and herbs.
These industries will now follow standardized GST rules for their essential oil trade.
For business setup support, check Setup Business in India.

Q9️⃣: How does this benefit small traders and exporters? 📈

Answer:
✅ Reduces confusion about GST applicability for mint and essential oil products.
✅ Promotes ease of doing business for local distillers and exporters.
✅ Encourages exports by ensuring transparency in classification and rate application.
For compliance and export registration, explore MSME Registration.