The Tamil Nadu Authority of Advance Ruling (AAR) ruled that ready-to-use powder mixes to attract 18% of Goods and Service Tax.
The applicant, Krishna Bhavan Foods and Sweets stated that they make ready-to-eat foods and that the ingredients are added by simply mixing/mixing a portion of salt, rice, and rice flour. These mixtures are the same as the mixture of flowers of vegetable plants. They also disclosed that they registered for a trademark in 2018, which is still pending.
The applicant has sought the advance ruling on the issue of clarification on the rate of GST for their products listed in the application and the applicable HSN code.
The Coram of Kurinji Selvaan V.S. and Senthil Velavan B. ruled that Branded mixes for dosa, idli, tiffin, health, and porridge will yield a Goods & Services Tax (GST) of 18 percent.
The AAR said the products in question are all powdered food preparations.
“The dosai mixes and idli mixes are packaged and sold as mixes to be mixed with water/boiled water/curd to make it as batter and the product sold is a powder and not a batter,” it said while making it clear that it will attract GST at a rate of 18 percent and not 5 percent.
“In the case at hand, the products are all food preparations in the form of powder. The Dosai Mixes and Idli Mixes are packed and sold as mixes which are to be mixed with water/boiled water/curd to make it as batter and the product sold is a powder and not batter. Therefore the entry at 1O0A of Schedule-I is not applicable to the applicant’s products. All the 49 products for which the ruling is sought are classifiable under CTH 2106 and the applicable rate is 9oh CGST and 9% SGST as provided at Sl.No. 23 of Schedule -lII of the Notification No. 07l2OI7-C.T.(Rate) dated 28.06.2017 as amended and entry S.No. 23 of Schedule-Ill of Notification No. II (4/CTP./532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended,” the AAR said.
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