The Gujarat Authority of Advance Ruling (AAR) ruled that 18% GST on manufacturing and supply of ‘Fried Fryums’.
The applicant, M/s. Shree Swaminarayan Foods pvt. ltd. are engaged in the manufacture and supply of Fryums and different types of Namkeen/Farsan. The applicant has stated that the aforesaid item prepared from maida is purchased as raw material from market which is in unfried form, the same is first fried and thereafter various masala powders are applied and packed in small packets for being sold.
The fryums are sold by the applicant in different shapes and sizes such as alphabets, rings, stars etc. According to the applicant, it is a settled legal position that Fryums are Pappad and since papad is tax free/exempt as per tariff item 19059040, the Fryums manufactured and sold by the applicant would also be exempt from payment of any tax.
The applicant has sought the advance ruling on the issue whether any tax is payable in respect of sale of Fryums manufactured by the applicant, And if the answer is in the affirmative, the rate of tax thereof.
The coram consisting of Sanjay Saxena and Mohit Aggarwal ruled that the product ‘Fried Fryums’ manufactured and supplied by the applicant is classifiable under Tariff Item 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975). Goods and Services Tax rate of 18% (CGST 9% and GGST 9%) or IGST 18% is applicable to the product ‘Fried Fryums’ as per Sl. No. 23 of Schedule III of Notification No.1/2017-Central Tax (Rate), dated June 28, 2017, as amended, issued under the CGST Act, 2017 and Notification No.1/2017-State Tax (Rate), dated June 30, 2017, as amended, issued under the GGST Act, 2017 of IGST Act, 2017.
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