A popular Hajmola candy by the Dabur known for digestion has caused GST officials indigestion. DGGI (Directorate General of GST Intelligence) has started investigating whether it’s candy or Ayurvedic medicine.
While a normal candy attracts 18% GST, Ayurvedic medicine only attracts 12% GST it’s produced under the license of Ayurvedic and Unani Services under the Drug and Cosmetics Act, 1940.
#CNBCTV18Exclusive | Sources tell @CNBCTV18News that #@DaburIndia's #Hajmola candy is under #DGGI scanner. It is being investigated if Hajmola Candy should be treated as an ayurvedic medicine as that will attract a lower GST rate vs a candy. @TimsyJaipuria pic.twitter.com/c6fOHE5lqf
— CNBC-TV18 (@CNBCTV18News) April 11, 2025
DGGI has alleged that Hajmola candy does not come under Ayurvedic medicine, it’s a normal candy.
A similar issue was raised before the GST regime in 2002, when an appeal was filed by the Commissioner of Central Excise, Chandigarh. He alleged that Hajmola Tables should not come under Ayurvedic medicine on the the other hand CESTAT (Customs Excise and Service Tax Appellate Tribunal) argued that Hajmola Tablets were Ayurvedic medicine. At that time Supreme Court had dismissed that appeal.
Later, this issue was raised again when Uttar Pradesh’s Commercial Tax Department appealed against the ruling by CESTAT. They alleged that Hajmola Candy and Tablets, and Chayawanprash are Ayurvedic medicines only for tax-saving purposes, these are mostly available in grocery stores rather than medical stores.
But that appeal was dismissed by Allahabad High Court by saying the place of sale is not relevant to decide whether it’s ayurvedic medicine or not. The thing that matters is the license under which the product is produced.