12% GST applicable to Mango Pulp: Andhra Pradesh HC Overrules AAAR Ruling [Read Order]

GST - Mango Pulp - Andhra Pradesh High Court - AAAR Ruling - AAAR - Taxscan

A division bench of the Andhra Pradesh High Court, while overruling the orders passed by the Appellate Authority for Advance Ruling (AAAR) imposing GST in respect of ‘mango pulp’ @ 18%, has held that the same is incorrect since the item Mango pulp attracts 12% GST.

The petitioner approached the division bench of the High Court seeking issuance of a Writ of Mandamus directing the tax department to declare the goods manufactured by the petitioner as classifiable under Chapter Heading 0804 50 40 and exempt from GST in terms of entry 51 of Notification No.2/2017-CT(Rate) dated 28.06.2017.

A bench of Justice C.Praveen Kumar and Justice A.V.Ravindra Babu relied on the Circular dated 03.08.2022 wherein it was clarified that mangoes, fresh falling under heading 0804 are exempt; Mangoes, sliced and dried, falling under 0804 are chargeable to a concessional rate of 5%; while all other forms of dried mango, including Mango pulp, attract GST at the rate of 12%. To bring absolute clarity, the relevant entry at S. No. 16 of Schedule-II of notification no.1/2017-Central Tax (Rate), dated 28th June, 2017, has been amended vide notification No. 6/2022-Central Tax (Rate), dated the 13th July, 2022.

Relying on the above, the Court observed that “from a reading of the above, it is very clear now that on the basis of recommendation of GST Council in its 22nd meeting, the GST rate on ‘Mangoes sliced, dried’ falling under heading 0804 was reduced from 12% to 5% while GST rate on all forms of dried mangoes (other than sliced and dried mangoes) falling under heading 0804, including mango pulp, was always meant to be at the rate of 12%. Therefore, the petitioner is liable to pay GST on Mango pulp @ 12%.”

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