Carbonated Fruit Juices are Aerated Drinks, 28% GST applicable: AAAR [Read Order]

The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) upheld the order of the Authority of Advance Ruling (AAR) and held that the carbonated fruit juices such as ‘Richyaa Darner Lemon’ and ‘Licta Lemon’  supplied by the applicant are classifiable under CTH 22021020 and all others i.e. ‘Richyaa Darner Cola’, ‘Licta Cola’, ‘Richyaa Darner Jeera Soda’, ‘Licta Jeera Masala’, ‘Richyaa Darner Orange’ and ‘Licta Orange’ are classifiable as ‘Other’ under CTH 22021090.  Hence, in the GST Council Meeting, it was held that 28% plus cess will be applicable.

The appellant, M/s. Rich Dairy Products (India) Pvt Ltd. manufactures fruit juices and also carbonated fruit juices. The appellant filed an appeal against the order passed by the Tamil Nadu State Authority for Advance Ruling (AAR).

The appellant sought an advance ruling on the issue of whether carbonated fruit juices fell under Fruit Juices or aerated drinks.

“The products ‘Richyaa Darner Lemon’ and ‘Licta Lemon’ to be supplied by the applicant are classifiable under CTH 22021020 and all others i.e. ‘Richyaa Darner Cola’, ‘Licta Cola’, ‘Richyaa Darner Jeera Soda’, ‘Licta Jeera Masala’, ‘Richyaa Darner Orange’ and ‘Licta Orange’ are classifiable as ‘Other’ under CTH 22021090,” the Tamil Nadu State Authority for Advance Ruling (AAR) ruled.

The applicant contended that the products are being manufactured by them from 27th November 2017 and before that they were using artificial flavoring which did not contain any fruit juice and the products are not comparable.

The bench consisted of the members, Sanhita Sharma and M.A. Siddique uphold the decision of the Authority of Advance Ruling (AAR) and held that The products ‘Richyaa Darner Lemon’ and ‘Licta Lemon’ to be supplied by the applicant are classifiable under CTH 22021020 and all others i.e. ‘Richyaa Darner Cola’, ‘Licta Cola’, ‘Richyaa Darner Jeera Soda’, ‘Licta Jeera Masala’, ‘Richyaa Darner Orange’ and ‘Licta Orange’ are classifiable as ‘Other’ under CTH 22021090.  Hence, in the GST Council Meeting, it was held that 28% plus cess will be applicable.