12% GST on Salted and Masala Chips of Potato and Tapioca, Jackfruit Chips, Roasted and Salted Groundnuts, Cashew Nuts: AAR [Read Order]

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST on salted and masala chips of Potato and Tapioca, Jackfruit Chips,  roasted and salted groundnuts, and cashew nuts.

The applicant, N. M. Thualseedharan, M/s. N.V. Chips is engaged in business as a supplier of Jackfruit Chips without the brand name. The applicant purchases Jackfruit Chips from other registered persons making Jackfruit Chips. They levy tax at the rate of 5% under HSN Code 1903 and accordingly the applicant also classified it under the same HSN Code and levied tax at the rate of 5%. The applicant also intends to engage in the supply of salted as well as masala chips made from Tapioca and Potato, roasted/roasted and salted/salted preparations made out of groundnuts, cashew nuts and other seeds.

The applicant has sought the advance ruling on the issue of whether Jackfruit Chips sold without BRAND NAME are classifiable as NAMKEENS and are covered by HSN code 2106.90.99 and taxable under Entry 101A of Schedule of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017, Whether roasted and salted/salted/roasted preparations such as of groundnuts, cashew nut and other seeds are NAMKEENS and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

The applicant has further sought the ruling on Whether salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1 of 2017.

The coram of Joint Commissioner of Central Tax, Shiva Prasad, and Additional Commissioner of State Tax, Senil A.K.Rajan ruled that the Jackfruit Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% (6% – CGST + 6% – SGST) as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

The AAR ruled that roasted/salted/roasted and salted Cashew nuts are classifiable under Customs Tariff Heading 2008.19.10 and roasted/salted / roasted and salted Groundnuts and other nuts are classifiable under Customs Tariff Heading 2008.19.20 and is liable to GST at the rate of 12% (6% – CGST + 6% – SGST) as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

“The salted and masala chips of Potato and Tapioca are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% (6% -CGST + 6% – SGST) as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017,” the AAR said.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.