The Maharashtra Authority of Advance Ruling ( AAR ) has held that glaze gels attract 18% GST.
M/s Healthy Life Foodtech Pvt. Ltd., the Applicant, registered under MGST Act, 2017 manufactures the impugned product namely GLAZE GELS and markets it to Bakeries all across India.
It was submitted by the applicant that their product, namely glaze gels, also known by its various synonyms in trade, namely “Geli,” “Coldgeli,” “Glaze,” etc., is made of various sugars, water, thickening agents, colours, and flavours. The ingredients may also be used for making “sugar-boiled confectionery” (SBC).
The process of manufacturing the product “glaze gels” which is similar to the process of manufacturing “SBC” and therefore the subject product needs to be classified as ‘Sugar Boiled Confectionery’ falling under Chapter Heading 1704 and covered by Schedule II, Sr. No. 32AA, attracting 12% GST of Notification No. 01/2017 dated 28.06.2017 as amended from time to time about the rate of GST on goods.
The applicant has stated that Cake/ Pastry making involves stacking slices of sponge cake in layers which are sandwiched with Creams mixed with fruits/ nuts/ crumbs/gems and/or pieces of sugar-boiled confectionery for taste, colour and decorative purposes.
Since the impugned product is a type of confectionery made of sugar, the two-member bench of M. Rammohan Rao and T.R. Ramnani has held that “the impugned product falls under Chapter Heading 17.04, which covers ‘Sugar Confectionery (including white chocolate), not containing cocoa. 5.8 As per Sr. No. 12 of Schedule III of Notification No. 01/2017 — Central Tax (Rate) dated 28.06.2017, ‘Sugar confectionery (excluding white chocolate and bubble/chewing gum) [other than bura, batasha]’ falling under Chapter Heading 1704 attracted GST at 18%.”
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