28% GST on ‘K juice Grape’: AAAR [Read Order]

GST - K juice Grape - AAAR - Taxscan

The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) while affirming the order of the original authority held that 28% GST is applicable on ‘K juice Grape’.

The appellant, M/s. Kalis Sparkling Water Private Ltd. has sought the ruling in respect of rate of tax and HSN Code for fruit beverages or drinks namely K juice Grape.

The Original Authorities have ruled that the product K Juice Grape falls under the category of “Other” under CTH 2202 10 90. The applicable rate of tax is 14% CGST vide Sl. No. 12 of Schedule IV under Notification No. 112 L7-Central Tax (Rate) and 14% under SGST at 14% vide S1.No of Schedule IV under Notification dated 29.06.2017 as amended.

The appellant has challenged the order of the AAR on the grounds that Authority for Advance Ruling failed to appreciate the fact that there is a specific entry enumerating “Fruit Juice Based Drinks under the GST schedule attracting 12% tax and the Customs Tariff Head (CTH) also has a similar entry.

The coram of M.A.Siddiqui and G.V.Krishna Rao while upholding the AAR’s ruling held that it is seen that Pre-GST Tax incidence on the product was 40% whereas, in the GST regime, it was proposed to be taxed at 28%, which was agreed by the GST Council.

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