The Tamil Nadu State Appellate Authority for Advance Ruling (AAAR) has held that powdered form of ready to cook branded products such as idly-dosa mix, tiffin mix, sweet and health mix, porridge mix etc attracts 18% GST.
The appellant M/S Krishna Bhavan Foods and Sweets are manufacturers of ready to prepare cook products like dosai-idly mix, tiffin mix, sweet and health mix, porridge mix etc. Appellant sought Advance Ruling for the clarification on the rate of GST and applicable HSN CODE. Aggrieved by the order of AAR, imposing GST liability of 18% on the above food products, appellant filed an appeal before AAAR.
While upholding the AAR decision, the coram comprising of Sri M V S Choudary and Sri K Phanindra Reddy held that the products manufacture would certainly have value addition by adding spices instead of mere leguminous vegetable flour to attract consumers. Further process made by the appellants to make them appealable to the consumers by way of taste and such characteristic addition to the mixture of flour would make them distinct from normal flour. HNS 2106 state about improvement of characteristic of food preparation and also ready to cook mix has not been specified elsewhere they need to be classified under HNS 2106 and are leviable to GST at 18%.
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