The Tamilnadu Advance Ruling Authority has exempted Vadam/Papad made of Maida from GST. The order was based upon the application for advanced ruling by one M/s. Subramani Sumathi who are manufacturers of Maida Papad based in washermenpet, Chennai.
The asessee’s application for advanced ruling seek knowledge regarding the rate of tax for vadams made of maida and the HSN code applicable. The Applicant was personally heard and they stated that the items are made of maida, salt, bicarbonate. They stated that the items are at present being sundried and in future they intend to use stove/oven. At the time of hearing, it was informed that the query/activity has to be clearly specified, as both manufacturing processes are different. The Applicant was requested to submit further clarification on the manufacturing activities along with related photographs. It was also remarked that the end product was not ready for instant consumption and that the buyer had to fry it first in oil in order to consume.
The Authorities was to decide whether the product in question is ‘Papad’ falling under Ch.1905 or a ‘namkeen’ falling under Ch.2706 of the act.
IRS member Ms. Manasa Gangotri Kata, and FAC member Mr. Thiru S. Vijayakumara after considering the facts, submissions presented and the provisions of the act ruled, “The Applicants product namely “Maida Vadam/Papad” is classifiable under ‘19050540’ and is exempted from CGST and SGST.”
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