5% GST on Khaman Mix Flour, Upma Mix Flour, Chutney Powder: AAR [Read Order]

5% GST on Khaman Mix Flour, Upma Mix Flour, Chutney Powder: AAR [Read Order]

GST - Khaman mix flour - Upma mix flour - Chutney powder - AAR -Taxscan

The Gujarat Authority of Advance Ruling (AAR) ruled that 5% GST on Khaman mix flour, Upma mix flour, Chutney powder.

The applicant, M/s. Dipakkumar Kantilal Chotai (Talod gruh Udyog) is a proprietorship firm and is one of the leading and highly reputed companies in the field of selling mixed flour which is used for preparing various Indian dishes; that applicant manufactures mixed flour which is used by customers for preparing different traditional Indian dishes such as Khaman, Gota, Dhokla, Handwa, Rice & Rava Idli Dosa, Dahi Vada, Dalwada, Medu Vada, Bhajiya, Vada Masala, Khichu Upma, Muthiya Pudia, Gulab Jamun, Moong Bhajiya and Cholafali; that in a nutshell the said mixed flour is used for preparing instant farsan or eatable and a special mention can be made of Khaman, Gota and Handvo mix which has been accepted in the market as a product leader.

The applicant has stated that he is in the business of manufacturing and selling of varied types of mixed flour under the ‘Talod’ brand name that are used to prepare instant Farsan and other similar dishes; ready to mix/instant mix is a flour of grains and pulses mixed with spices and condiments, that recipe for preparing farsan/eatables is printed on the packet of product and by following the direction of recipe, farsan/eatables can be prepared instantly after adding such other ingredients as required.

The applicant has put forward the question for which Advance Ruling is to be sought in respect of classification of Mix flour, Chutney Powder and Chutney powder when supplied with Gota Mix flour and Bhajiya Mix flour, should be considered as Composite Supply having HSN of principal supply i.e. 1106 and 5% GST should apply.

The coram consisting of Sanjay Saxena and Mohit Agarwal held that Khaman mix flour, Gota mix flour, Handvo mix flour, Dahi vada mix flour, Dalwada mix flour, Meduvada mix flour, Pudla mix flour, Moong bhajiya mix flour, Chorafali mix flour, Bhajiya mix flour, Dhokla mix flour, Idli mix flour, and Dosa mix flour are classifiable under sub-heading 11061000 of the First Schedule to the Customs Tariff Act, 1975. They appear at Entry No.59 of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the GST liability on all these products is 5% GST.

“Upma mix flour, Rava idli mix flour and Muthiya mix flour are classifiable under sub-heading 23023000 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)whereas Khichu mix flour is classifiable under sub-heading 23024000 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). They appear at Entry No.103A of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the GST liability on these products is 5%(2.5% CGST + 2.5% SGST),” the AAR ruled.

The Authority further added that Chutney powder is classifiable under Sub-heading 21069099 of the First Schedule to the Customs Tariff Act, 1975(1 of 1975). The said product appeared at Entry No.23 of Schedule-III of Notification No.01/2017- Central Tax (Rate) dated 28.06.2017 till 14.11.2017 and at Entry No.100A of Schedule-I of the said notification with effect from 15.11.2017. The GST liability on the said product was 18%(9% CGST + 9% SGST) upto 14.11.2017 and 5% with effect from 15.11.2017.

“The supply of Gota Mix and Chutney powder will be considered as a ‘mixed supply’ of goods and will be considered as a supply of Gota Mix (falling under Sub-heading 11061000 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)) on which the GST liability will be 5%(2.5% CGST + 2.5% SGST). The supply of Bhajiya Mix and Chutney powder will be considered as a ‘mixed supply’ of goods and will be considered as a supply of Bhajiya Mix (falling under Sub-heading 11061000 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)) on which the GST liability will be 5%(2.5% CGST + 2.5% SGST),” the AAR added.

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