The Karnataka Authority of Advance Ruling (AAR) ruled that 18% GST payable on Rava Idli Dosa.
The Applicant, Swastiks Masalas Pickles is a Private Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017. The Applicant is engaged in manufacture of spices, masalas, pickles and food products in the brand name of “SWASTIK”. The applicant, among other things, also manufactures and sells “Rava Idli Mix” under the brand name of SWASTIK, classifying the same under tariff heading 2106 9099, on discharging GST at 18%. However the applicant felt that the said product merits classification under HSN 1106 and hence filed the instant application.
The applicant has sought advance ruling in respect of HSN Code of the product “Rava Idli Mix”.
The coram of Dr. Ravi Prasad and T.Kiran Reddy held that Rule 3(b) of the general rules for the interpretation of customs tariff specifies that “mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their character, in so far as the criterion is applicable.” In the instant case the essential impugned product is admittedly a mixture and does not give the character of either of the constituent flour but altogether a different new product with the different character as “Rava Idli Mix”. Therefore the impugned product classifiable under Rule 3(a) supra and hence Rule 3(b) is not applicable. Further as rightly For the impugned product is covered under rule 3(a), there is no need to look into rule 3(c).
The AAR said that the product “Rava Idli Mix” merits classification under tariff heading 2106 and attracts 18% GST in terms of entry number 23 of schedule-Ill to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017.
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