GST classification of Kerala snack foods depends on product character, HSN description, and branding for namkeen rates.

GST classification of Kerala snack products turns on their essential character and the relevant HSN entry. Peanut Candy and Gingelly Candy are treated as sugar-based confectionery under HSN 1702 and attract 5% GST. Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball (ariyunda) and Avil Vilayichathu are treated as sweetmeats under HSN 2106 90 and also attract 5% GST. Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta/Thattavada and Murukku are namkeens under HSN 2106 90, taxable at 12% when sold under a brand or trade name, and at 5% when sold without brand name or with waived actionable claim. Baked Chips are classified as roasted or fried vegetable products under HSN 2008 19 40 and attract 12% GST.

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Issues: (i) Whether Peanut Candy and Gingelly Candy fall under the 5% GST entry for confectionery products; (ii) Whether Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball (ariyunda) and Avil Vilayichathu fall under the 5% GST entry for sweetmeats; (iii) Whether Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta/Thattavada and Murukku are taxable as namkeens at 12% when sold under brand/trade name and at 5% when sold without brand name or with waived actionable claim; (iv) Whether Baked Chips fall under the 12% GST entry for roasted and fried vegetable products.

Issue (i): Whether Peanut Candy and Gingelly Candy fall under the 5% GST entry for confectionery products.

Analysis: The products are sugar-based confectionery made by heating sugars. On the facts stated, they answer the description of confectionery products and are classifiable under HSN 1702. The applicable rate entry provides 5% GST under the First Schedule.

Conclusion: Peanut Candy and Gingelly Candy are taxable at 5% GST.

Issue (ii): Whether Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball (ariyunda) and Avil Vilayichathu fall under the 5% GST entry for sweetmeats.

Analysis: These items are traditional Kerala sweet snacks made principally with rice, jaggery and allied ingredients. They were treated as sweetmeats classifiable under HSN 2106 90, attracting the relevant 5% entry in the First Schedule.

Conclusion: Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball (ariyunda) and Avil Vilayichathu are taxable at 5% GST.

Issue (iii): Whether Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta/Thattavada and Murukku are taxable as namkeens at 12% when sold under brand/trade name and at 5% when sold without brand name or with waived actionable claim.

Analysis: These items were treated as savouries with a salty or spicy character and classifiable as namkeens under HSN 2106 90. The ruling distinguished between sale under a brand or trade name, attracting the 12% entry in the Second Schedule, and sale without a brand name or with waived actionable claim, attracting the 5% entry in the First Schedule.

Conclusion: Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta/Thattavada and Murukku are taxable at 12% GST if sold under a brand or trade name, and at 5% GST if sold without brand name or with waived actionable claim.

Issue (iv): Whether Baked Chips fall under the 12% GST entry for roasted and fried vegetable products.

Analysis: Baked Chips were classified under HSN 2008 19 40 as other roasted and fried vegetable products, making them eligible for the 12% rate entry in the Second Schedule.

Conclusion: Baked Chips are taxable at 12% GST.

Final Conclusion: The advance ruling settles the GST classification and rate applicable to each product category, with different treatment based on the nature of the product and, for certain savouries, the presence or absence of a brand/trade name.

Ratio Decidendi: GST rate classification depends on the essential character and HSN description of the goods, and where the rate entry turns on branding, the presence of a brand or trade name determines the applicable tax rate.

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