The Advance Ruling Authority (AAR), Kerala has held that the product ‘Ada’ is classifiable as Seviyan (vermicelli) under Heading No. 1902 for which, GST of 5 percent is attracted.
In the instant case, the applicant was a wholesale distributor of product ‘Ada’. It filed an instant application to sought advance ruling on classification of ‘Ada’.
It was noted that the Product, ‘Ada’, in sum and substance, is something akin, i.e., similar in character to ‘Vermicelli’. Both are made from ‘maida or rice flour’ or ‘maida and rice flour’ and are manufactured through an identical process. There is indeed nothing to differentiate ‘Ada’ from ‘vermicelli’ except for the dies that are used in the manufacturing process which gives it a different shape.
The authority held that the product ‘Ada’ is something similar in character to ‘Vermicelli’ and same merits classification under HSN 1902 of 1st Schedule [Sl No. 97 – Seviyan (Vermicelli) of Notification No. 01/2017 – Central Tax (Rate) dated 28-6-2017 and State Government Notification No. 360/2017 attracting 5 per cent GST.
“Therefore, ‘Ada’ merits classification under HSN 1902 of the 1st Schedule [Sl. No. 97 – Seviyan (Vermicelli)] of Notification No. 01/2017 – Central Tax (Rate) dated 28-6-2017 and State Government Notification No. 360/2017 attracting 5 per cent GST,” the authority said.
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