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Classification of nicotine gums
What is classification of chewing gums which help in quiet smoking.
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| Nicotine gums (used for nicotine replacement therapy) have a specific classification: 1. HSN Code: Nicotine gums (like Nicotex, Nicorette) are classified under HSN 3004 — Medicaments (including those used in veterinary medicine) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale. 2. GST Rate: HSN 3004 attracts 12% GST for most medicaments. However, nicotine gums specifically — being pharmaceutical products for smoking cessation — are covered under Entry 180 of Schedule II of Notification 1/2017-IT(Rate) at 12% GST. 3. If Sold as Confectionery/Chewing Gum: If a product claims to be a 'chewing gum with nicotine' (not a medicament), it may fall under HSN 1704 (sugar confectionery) attracting 18% GST. The difference hinges on whether the product has a drug licence and is marketed as a therapeutic product. 4. Drug Licence Requirement: Nicotine replacement therapy products (including gums) require a licence under the Drugs and Cosmetics Act for manufacture and sale — this confirms their medicament classification under HSN 3004. 5. Import Customs Duty: For import of nicotine gums, basic customs duty under HSN 3004 is applicable as per the current customs tariff. Check the latest ITC(HS) schedule for the exact BCD rate. 6. Practical Advice: If the product holds a drug manufacturing licence and is sold through pharmacies with a therapeutic claim, classify under HSN 3004 at 12% GST. Take an advance ruling if classification is disputed. |
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