5% GST payable on Packed and Branded ‘Pushti’: AAR [Read Order]

The Karnataka Authority of Advance Ruling (AAR) ruled that 5% GST payable on Packed and Branded ‘Pushti’.

The applicant, M/s. Devanahalli and Hosakote Taluks MSPC states that they are registered as a “Society” under Karnataka Societies Registration Act, 1960.

The applicant stated that as per the Integrated Child Development Services (ICDS) Scheme of the Government of India, Karnataka State Government has established Mahila Supplementary Production and Training Center (MSPC) in all the taluks of the State. MSPC supply supplementary food to Anganwadi centers through Child Development Project Office (CDPO) and the activities and operations of MSPC are supervised by the CDPO of the concerned Taluks. The society i.e MSPC is all women associated with the main objective of member’s welfare especially widows, women in reservation cadre, backward communities, and SC/ST. Further, the society also aims at providing high nutrition food products to beneficiaries under ICDS Scheme. The applicant states that the Society is formed with the motive of social welfare and not monetary benefits.

The applicant has sought the advance ruling on the issue in respect of Classification of Goods, HSN Code, and Rate of Tax on Pushti, a mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportions.

The Coram of M.P.Ravi Prasad and T.Kiran Reddy ruled that Pushti, which is a powdered mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportions, is classified under HSN code 1106. If unbranded, it attracts Nil GST as per S. No. 78 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 and if branded and packed, it attracts 5% GST as per S. No. 59 of Schedule I of notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017.

To Read the full text of the Order CLICK HERE

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