Mango Pulp not Fresh Fruit: Ruled Taxable at 18% under GST Act

The authority ruled against treating Mango Pulp as fresh fruit for tax exemption, classifying it under fruit pastes and subjecting it to an 18% tax rate under entry no. 453 of the GST Act. The decision was based on the absence of a specific entry for Mango Pulp in the tariff, leading to its classification under the residuary entry.

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Issues:
1. Classification of Mango Pulp/puree and eligibility for tax exemption.
2. Determination of the tax rate applicable on outward supplies of Mango fruit pulp under the GST Act.

Issue 1: Classification of Mango Pulp/puree and eligibility for tax exemption:
The applicant contended that Mango Pulp should be treated as fresh fruit, thus exempt from tax. However, the authority clarified that the exemption under entry No.51 of 0804 only applies to fresh mangoes, not processed products like pulp. The authority analyzed the classification under Headings 2007 and 2008, concluding that Mango Pulp falls under fruit pastes, making the claimed exemption inapplicable. The recent tariff changes specified Mangoes sliced, dried at 5%, but remained silent on Mango Pulp. As there was no specific entry for Mango Pulp, it was classified under the residuary entry 453, attracting an 18% tax rate.

Issue 2: Determination of tax rate on outward supplies of Mango fruit pulp:
The ruling clarified that Mango Pulp/puree falls under entry no. 453 of Schedule-III of Notification No.1/2017-Central Tax (Rate) dt: 28.06.2017, subject to an 18% tax rate. The authority's decision was based on the absence of a specific entry for Mango Pulp in the GST tariff, leading to its classification under the residuary entry.

In conclusion, the authority ruled negatively on treating Mango Pulp as fresh fruit for tax exemption and determined an 18% tax rate on outward supplies of Mango fruit pulp under the GST Act. The detailed analysis considered relevant legal provisions, tariff classifications, and recent amendments to arrive at a comprehensive decision.

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