The Gujarat Appellate Authority of Advance Ruling (AAAR) has ruled that 18% GST is payable on supply of instant mix flours for Gota, Khaman, Dalwada, Dahiwada, Idli, Dhokla, Dhosa, Pizza, Methi Gota and Handvo.
The bench of B.V Siva Naga Kumari and Rajeev Topno upheld the AAR’s ruling and held that the Mix Flour / Instant Mix Flour is not a ready-to-eat food. In this regard, we observe that Chapter Heading 21.06 and specifically Tariff Item 2106 90 is not confined to processed or semi processed food, cooked or semi cooked food, preserved food and ready to eat food. In fact, any product which is a food preparation and which is not elsewhere specified or included in the CTA, 1975, gets covered under Chapter Heading 2106 of the CTA, 1975. Therefore, merely because the end consumer of the Instant Mix Flour is required to follow certain food preparation processes before such product(s) can be consumed, is no ground to take these products out of Chapter leading 2106 of the CTA, 1975.
The appellant is engaged in the business of manufacture and supply of the below mentioned ten instant mix flours which as per the appellant are not in ‘ready to eat’ but in ‘ready to cook’ form under their registered brand name.
The appellant sought the advance ruling on applicability of GST on supply of instant mix flours for gota, khaman, dalwada, dahiwada, idli, dhokla, dhosa, pizza, methi gota and handvo.
Yet another issue raised was with respect of the applicability of GST rate of tax under the GST Acts on supply of instant mix flour for gota/methi gota along with chutney powder/kadhi chutney powder and the GST rate on supply of khaman along with masala pack.
The AAR held that the subject 10 goods merit classification at IISN. 2106 90 attracting 18% GST (9% CGST 9% SGST) as per Sl. No. 23 of Schedule-III to the Notification No.01/2017-Central Tax (Rate) dated 28-6-17.
The AAR stated that the mixed supply of Instant mix flour of Gota/Methi Gota with Chutney powder/Kadi Chutney powder shall be treated as supply of Instant Gota Mix Flour/Instant Methi Gota Mix Flour respectively (falling under IISN 2106 90) on which the GST liability will be 18%.
The AAR held that the mixed supply of Instant mix flour of Khaman and masala pack shall be treated as supply of Instant Mix Flour of Khaman (falling under HSN 2106 90) on which the GST liability will be 18%.
The AAAR held that merely because the end consumer of the Instant Mix Flour is required to follow certain food preparation processes before such product(s) can be consumed, is no ground to take these products out of Chapter Heading 2106 of the CTA, 1975.
Ruling Details
Applicant Name: M/s. Ramdev Food Products Pvt. Ltd.
Date: 22/01/2025
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