Classification of Food Products under GST: Mixed flours and chutney powder categorized with specific GST rates

The court ruled that various mixed flours like Khaman Mix Flour, Gota Mix Flour, Handwa Mix Flour, and others are classified under sub-heading 11061000, attracting a GST rate of 5%. Additionally, Chutney Powder is classified under sub-heading 21069099, with a GST rate of 18% till 14.11.2017 and 5% thereafter. The supply of Gota Mix and Chutney Powder, as well as Bhajiya Mix and Chutney Powder, constitutes a Mixed Supply, each attracting a GST rate of 5%.

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Issues Involved:
1. Classification of various mixed flours under the appropriate HSN codes.
2. Classification of Chutney Powder under the appropriate HSN code.
3. Determination of GST rates applicable to the mixed flours and Chutney Powder.
4. Determination of whether the supply of Chutney Powder with Gota Mix flour and Bhajiya Mix flour constitutes a Composite Supply or Mixed Supply.

Detailed Analysis:

1. Classification of Mixed Flours:
The applicant manufactures various mixed flours used for preparing traditional Indian dishes. The mixed flours contain significant proportions of leguminous flours, rice flours, and other ingredients. The classification of these mixed flours under the appropriate HSN codes is crucial for determining the applicable GST rates.

- Products with Predominant Leguminous Flour Content:
- Khaman Mix Flour (66% leguminous flour)
- Gota Mix Flour (75% leguminous flour)
- Handwa Mix Flour (50% leguminous flour)
- Dahi-wada Mix Flour (94% leguminous flour)
- Dalwada Mix Flour (95% leguminous flour)
- Meduvada Mix Flour (86% leguminous flour)
- Pudla Mix Flour (96% leguminous flour)
- Moong Bhajiya Mix Flour (95% leguminous flour)
- Chorafali Mix Flour (98% leguminous flour)
- Bhajiya Mix Flour (93% leguminous flour)

These products are classified under sub-heading 11061000 of the First Schedule to the Customs Tariff Act, 1975, as they have the essential character of leguminous flour. They fall under Entry No.59 of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, attracting a GST rate of 5% (2.5% CGST + 2.5% SGST).

- Products with Equal Content of Leguminous and Rice Flour:
- Dhokla Mix Flour (45% leguminous flour, 45% rice flour)
- Idli Mix Flour (45% leguminous flour, 45% rice flour)
- Dosa Mix Flour (45% leguminous flour, 45% rice flour)

These products are classified under sub-heading 11061000 as per Rule 3(c) of the General Rules for the interpretation of Customs Tariff. They also fall under Entry No.59 of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, attracting a GST rate of 5% (2.5% CGST + 2.5% SGST).

- Products with Predominant Wheat or Rice Flour Content:
- Upma Mix Flour (70% suji flour, 20% leguminous flour)
- Rava Idli Mix Flour (70% suji flour, 20% leguminous flour)
- Muthiya Mix Flour (90% wheat flour)
- Khichu Mix Flour (95% rice flour, 2% Sabu dana flour)

These products are classified under headings 1103, 1101, and 1102 respectively, based on their essential character. However, due to the lack of details regarding ash content, starch content, and rate of passage through a sieve, they are concluded to fall under heading 2302. They appear at Entry No.103A of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, attracting a GST rate of 5% (2.5% CGST + 2.5% SGST).

2. Classification of Chutney Powder:
Chutney Powder, consisting of 90% wood apple powder and 10% spices, is classified under sub-heading 21069099 of the First Schedule to the Customs Tariff Act, 1975. Initially, it attracted a GST rate of 18% (9% CGST + 9% SGST) till 14.11.2017. Post 15.11.2017, it falls under Entry No.100A of Schedule-I, attracting a GST rate of 5% (2.5% CGST + 2.5% SGST).

3. Determination of GST Rates:
- Mixed flours classified under sub-heading 11061000 attract a GST rate of 5%.
- Mixed flours classified under heading 2302 attract a GST rate of 5%.
- Chutney Powder initially attracted a GST rate of 18%, which was reduced to 5% post 15.11.2017.

4. Composite Supply vs. Mixed Supply:
The supply of Chutney Powder with Gota Mix flour and Bhajiya Mix flour does not constitute a Composite Supply as they are not naturally bundled and can be supplied separately. Instead, it constitutes a Mixed Supply as per Section 2(74) of the CGST Act, 2017, where a single price is charged for the combined supply.

- Tax Liability on Mixed Supply:
Since the GST rate for Gota Mix, Bhajiya Mix, and Chutney Powder is the same (5%), the mixed supply of Gota Mix and Chutney Powder will be treated as a supply of Gota Mix, and the mixed supply of Bhajiya Mix and Chutney Powder will be treated as a supply of Bhajiya Mix, each attracting a GST rate of 5%.

Ruling:
1. Khaman Mix Flour, Gota Mix Flour, Handwa Mix Flour, Dahi-wada Mix Flour, Dalwada Mix Flour, Meduvada Mix Flour, Pudla Mix Flour, Moong Bhajiya Mix Flour, Chorafali Mix Flour, Bhajiya Mix Flour, Dhokla Mix Flour, Idli Mix Flour, and Dosa Mix Flour are classified under sub-heading 11061000, attracting a GST rate of 5%.
2. Upma Mix Flour, Rava Idli Mix Flour, and Muthiya Mix Flour are classified under sub-heading 23023000, and Khichu Mix Flour under sub-heading 23024000, each attracting a GST rate of 5%.
3. Chutney Powder is classified under sub-heading 21069099, attracting a GST rate of 18% till 14.11.2017 and 5% thereafter.
4. The supply of Gota Mix and Chutney Powder, as well as Bhajiya Mix and Chutney Powder, constitutes a Mixed Supply, with each attracting a GST rate of 5%.

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