The Karnataka Authority for Advance Rulings (AAR) has classified a honey bee feed product under HSN code 1702.90, attracting an 18% GST rate.
M/s. Technocrats Equipment Sales & Service sought clarification on the classification and applicable GST rate for their product, ‘Bee-Prime Feed’.
The applicant, represented by Ashok. R. Kulkarni, contended that Bee-Prime Feed, a powder containing refined sugar and natural vitamins used to feed honeybees during off-seasons, should be classified under HSN 2309 9090 (Animal Feed). They argued that the product’s purpose aligns with the general description of this heading.
The AAR comprising M.P Ravi Prasad and Kiran Reddy. T, after examining the product’s composition and purpose, observed that “Bee-Prime Feed” does not squarely fall under HSN 2309. The dominant ingredient, sulphur-free refined sugar, has a specific entry in the tariff schedule.
It was referred to the explanatory notes for heading 1702, which cover “other sugars in solid form, sugar syrups, and also artificial honey and caramel,” and further cited explanation (C) for heading 1702, defining “artificial honey” as mixtures imitating natural honey and containing sucrose, glucose, or invert sugar. Based on this definition and the admitted similarity of ‘Bee-Prime Feed’ to natural honey, the authority ruled that the product merits classification under the more specific heading 1702.90.
The AAR concluded that ‘Bee-Prime Feed’ falls under HSN 1702.90 and attracts an 18% GST rate as per entry number 11 of Schedule III to Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017. The ruling clarifies that the product is not covered under the general description of animal feed but rather as artificial honey due to its composition and use.
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