The Gujarat Authority of Advance Ruling (AAR) ruled that 18% GST on ‘Un-fried Fryums’.
The applicant, M/s. Jayant Snacks and Beverages Pvt. Ltd., is engaged in the business of manufacturing and trading of “Papad” of different shapes and sizes. Papad is a crunchy snack that is conceptualised as a product that is raw pellet that is neither fully cooked nor ready to eat which can be stored for a longer period and needs to be cooked first either by frying or roasting before consuming as and when required.
The Papad turns out to be a papad when the dough is moulded and given the shape, usually a palm size round or may be smaller or bigger. However, with the changing of time and considering the different demands of different classes of consumers innovations are made in shapes and sizes also and now Papad comes in different shapes and sizes.
The applicant submitted that it does not required any extra effect to do the same with minor variations in proportions of ingredient and the dough is moulded in the desired shapes and size may be round, may be square, may be semi-circle, may be hollow circle with bars in between or may be square with bars in between intersecting each other or may be of shape of any instrument, equipment, vehicle, aircraft, animal etc. The shape may vary, the size may vary but the ingredients, the proportion of ingredients, the composition and the recipe remains similar, if not exactly the same.
The applicant has sought advance ruling on the issue under which tariff Heading PAPAD of different shapes and sizes manufactured/ supplied by the applicant would attract CGST and SGST.
The coram consisting of Sanjay Saxena and Mohit Aggarwal ruled that the product ‘Un-fried Fryums’ manufactured and supplied by applicant is classifiable under Tariff Item 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975. Goods and Services Tax rate of 18% is applicable to the product ‘Un-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 or IGST Act, 2017.
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