GST Classification of Flavoured Mouth Fresheners: AAR Rules 5% GST Applicable on Paan Kapsul and Related Products [Read Order]

The Gujarat Authority for Advance Ruling [AAR] has provided clarity on the Goods and Services Tax classification for a range of mouth fresheners and digestive candies holding them to be categorized under the food preparation tax levied at a moderate rate of 5%.

The applicant, who trades under the name and style of 'Ace Multitechs' and is identified by the name Kartik Pinakin Bhatt is a manufacturer of a range of diverse mouth fresheners and digestive candies, including Paan Kapsuls in Silver Coated, Regular and Rose flavors and Shots and Twins candies.

In order to understand the tax implications considering the GST rates levied on the raw materials used in the manufacturing process the applicant filed the application..

The classification that the applicant was looking for was for the purpose of complying with and invoicing their product line. The main contention was whether the mixed food preparations which are made from a variety of flavorings and coatings would be classified as miscellaneous edible preparations in Chapter 21 of the GST Tariff.

The Authority analyzed the nature of the eight products that were in contention and found that they are in fact food preparations not elsewhere specified.

The AAR bench comprising Sushma Vora (Member SGST) and Vishal Malani ( Member CGST) held that

Paan Kapsul (Silver Coated, Regular, and Rose) would be classified as HSN 2106 90 30 whereas Chat Pata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GoGas Candy would be classified as HSN 2106 90 99.

Regarding the tax rate, the Bench held that as per Serial No. 145 of Schedule-1 of Notification No. 9/2025-CT(R) the GST rate for the products falling under HSN 2106 excluding Pan Masala, is 5% it is (2.5% CGST and 2.5% SGST).

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