Mango Pulp/Puree Not Fresh Fruit: Tax Classification Update

The authority ruled that Mango Pulp/Puree does not qualify as fresh fruit and is not classified under specific headings, falling instead under the residuary entry no. 453 of Schedule III of Notification No. 1/2017-Central Tax (Rate) with an 18% tax rate under the GST Act.

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Issues Involved:
1. Classification of Mango Pulp/Puree under GST.
2. Tax rate applicable to Mango Pulp/Puree under GST.

Detailed Analysis:

Issue 1: Classification of Mango Pulp/Puree under GST
The applicant, M/s. Foods and Inns Limited, sought clarification on whether Mango Pulp/Puree can be treated as fresh fruit and thus claim exemption, or if it falls under the headings 20079910, 0804, or 2008.

- Applicant's Interpretation: The applicant argued that Mango Pulp/Puree should be classified as fresh fruit, citing that the process only extends the shelf life without altering the essential character of the fruit. They referenced the Customs Tariff Act, 1975, and previous judicial decisions to support their claim that Mango Pulp/Puree should fall under HSN code 20079910.

- Authority's Findings: The authority examined the classification under the CGST Act and APGST Act. They noted that fresh mangoes are exempt under heading 0804 as per Notification No. 2/2017-Central Tax (Rate). However, they clarified that the mangoes procured by the applicant are not marketed in the same state or frozen/chilled state as fresh fruit, making the entry under 0804 inapplicable.

- Chapter 20 Notes: The authority referred to the notes in Chapter 20 of the Customs Tariff Act, which exclude fruit pastes from headings 2007 and 2008. Therefore, Mango Pulp/Puree does not fall under these headings.

- Residuary Entry: Since there is no specific GST tariff entry for Mango Pulp/Puree, it falls under the residuary entry no. 453 of Schedule III of Notification No. 1/2017-Central Tax (Rate), which covers goods not specified in other schedules.

Issue 2: Tax Rate Applicable to Mango Pulp/Puree under GST
- Authority's Ruling: The authority concluded that Mango Pulp/Puree falls under entry no. 453 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, attracting a tax rate of 18%.

Summary of Rulings:
1. Classification: Mango Pulp/Puree cannot be classified as fresh fruit and does not fall under headings 20079910, 0804, or 2008.
2. Tax Rate: The applicable tax rate for Mango Pulp/Puree is 18% under entry no. 453 of Schedule III of Notification No. 1/2017-Central Tax (Rate).

This comprehensive analysis addresses the classification and tax rate applicable to Mango Pulp/Puree under the GST Act, ensuring that the legal terminology and significant phrases from the original text are preserved.

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