GST Ruling: Clear Classification of Traditional Snacks for Taxation

The case involved a manufacturer seeking an advance ruling on GST rates for various traditional snacks. Peanut Candy and Gingelly Candy were classified as confectionery products taxed at 5%. Uniappam, Neyyappam, and others were considered traditional sweet/snacks taxed at 5%. Savory items like Achappam and Murukku were classified as namkeens, taxed at 5% or 12% based on branding. Baked Chips were taxed at 12%. The ruling clarified the GST rates for each snack category based on ingredients and flavors, providing guidance for taxation purposes.

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Issues:
1. Determination of GST rate for various traditional snacks.
2. Classification of snacks into different categories for GST purposes.

Analysis:
The applicant, a manufacturer of traditional snacks from Kerala, sought an advance ruling on the GST rates applicable to a variety of products. The products included Peanut Candy, Gingelly Candy, Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball, Achappam, Kuzhalappam, Madakku, Pottlappam, Thatta/Thottavada, Murukku, Avil Vdayichathu, and Baked Chips. The products were classified into different categories based on their ingredients and flavors.

The Peanut Candy and Gingelly Candy were considered confectionery products falling under HSN 1702, and were ruled to be taxable at a 5% GST rate under Entry No.92 of the 1st Schedule. On the other hand, Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball, and Avil Vilayichathu were categorized as traditional sweet/snacks of Kerala, classified as "sweetmeats" under HSN 2106 90, and taxed at a 5% GST rate under Entry No.101 of the 1st Schedule.

For items like Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta/Thattavada, and Murukku, which were savory with a salty or spicy flavor, they were classified as "namkeens" under HSN 2106 90. The GST rate for these items varied based on whether they were sold under a brand name or not. If sold under a brand name, they were taxable at 12% under Entry 46 of the 2nd Schedule. If sold without a brand name or with voluntarily forgone rights, they were taxed at 5% under Entry No.101A of the 1st Schedule.

Lastly, Baked Chips were classified under HSN 2008 19 40 as "other roasted and fried vegetable products" and were taxed at a 12% GST rate under Entry 40 of the 2nd Schedule. The rulings provided clarity on the applicable GST rates for each category of traditional snacks based on their ingredients, flavors, and classification for taxation purposes.

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