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of <h1>Classification of 'Militry Malai Mithai' as sweet meat under Chapter Heading 2106 90 99 for GST.</h1> <h3>In Re: M/s. Italian Edibles Private Limited (IEPL)</h3> In Re: M/s. Italian Edibles Private Limited (IEPL) - 2018 (19) G. S. T. L. 111 (A. A. R. - GST) Issues Involved:1. Classification of the product 'Militry Malai Mithai' under the appropriate GST Tariff Heading.2. Determination of whether the product is a sweet meat, dairy product, or sugar confectionery.3. Examination of the applicant's arguments and the department's viewpoint on product classification.4. Analysis of applicable GST rates based on the classification.Detailed Analysis:1. Classification of 'Militry Malai Mithai':The applicant manufactures 'Militry Malai Mithai,' which contains sugar, vegetable fats, skimmed milk powder, whey powder, emulsifiers, and flavors. The product is packed in small sachets and marketed as a sweet meat.2. Determination of Product Type:- Sweet Meat Classification (Heading 2106):The applicant argues that the product should be classified as a sweet meat under Heading 21069099, citing that it is similar to traditional sweets like Rabdi and is recognized in the market as Mithai. The applicant references the CBEC FAQ, which includes similar products under HS Code 2106, attracting 5% GST.- Dairy Product Classification (Heading 0404):Alternatively, the applicant suggests that the product could be classified as a dairy product under Heading 04049000, as it contains natural milk constituents like skimmed milk powder and whey powder. However, the ruling finds that the product does not qualify as a natural milk constituent product and thus cannot be classified under Chapter 04.- Sugar Confectionery Classification (Heading 1704):The applicant currently classifies the product under Heading 1704 as sugar confectionery, attracting 18% GST. The ruling examines the product against various sub-headings under Chapter 17 and concludes that it does not fit any specific category such as chewing gum, jelly confectionery, boiled sweets, or toffees. The product is a semi-liquid preparation, not a solid or semi-solid confectionery, and thus cannot be classified under Chapter 17.3. Examination of Arguments and Department's Viewpoint:- The department's opinion aligns with the current classification under Heading 1704, but the ruling finds this insufficient and driven by the higher tax rate.- The ruling emphasizes that classification should be based on the product's nature and not the tax rate.4. Analysis of Applicable GST Rates:- The ruling concludes that the product should be classified under Chapter Heading 2106 90 99 as a miscellaneous edible product, specifically as a sweet meat.- The applicable GST rate for this classification is 5%, as per Notification No.01/2017-Central Tax (Rate) dated 28.06.2017.Conclusion:The product 'Militry Malai Mithai' is classified under Chapter Heading 2106 90 99 as a sweet meat, attracting a GST rate of 5%. This classification is effective prospectively and does not entitle the applicant to a refund of any previously paid tax.Ruling:- The product 'Militry Malai Mithai' will be classified under Chapter Heading 2106 90 of the GST Tariff as a sweet meat.- The ruling is subject to provisions under section 103(2) and remains valid unless declared void under Section 104(1) of the GST Act.
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