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5% GST is applicable on Branded Fried Gram: AAR [Read Order]

GST - Branded Fried Gram - AAR - GST Gram -Taxscan

The Karnataka Authority of Advance Ruling (AAR) ruled that the puffed gram called ‘fried gram’ is exempted from tax under Central Goods and Service Tax (CGST) Act and Karnataka GST Act if in case they are not branded and put up in unit containers. However, if they are branded and put up in unit containers, 2.5% CGST, and 2.5% Karnataka GST Act is applicable.

The applicant, M/s Bhagyalakshmi Trading Corporation is engaged in the business of supply of parched/ puffed grains. The applicant states that there is confusion amongst the business community about exemption on the fried gram.

The applicant sought the advance ruling on the question about the rate of Goods and Service Tax (GST) on parched or puffed grams.

The authority consisting of members Dr. M.P. Ravi Prasad and Mashood Ur Rehman Farooqui ruled that the puffed gram called ‘fried gram’ is exempted from tax under Central Goods and Service Tax (CGST) Act and Karnataka GST Act if in case they are not branded and put up in unit containers. However, if they are branded and put up in unit containers, 2.5% CGST, and 2.5% Karnataka GST Act is applicable.

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