GST Classification Ruling: Food Products Categorized for Tax Purposes

The ruling classified various food products under specific headings of the Customs Tariff Act for GST purposes. Jackfruit Chips, Banana Chips, Sharkara Varatty, Tapioca Chips, and Potato Chips were classified under Heading 2008 and taxed at 12% GST. Halwa was classified under Heading 2106.90.99 and taxed at 5% GST. The ruling highlighted the significance of accurate classification under the Customs Tariff Act in determining the appropriate GST rates.

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Issues Involved:
1. Classification and taxability of Jackfruit Chips, Banana Chips, and Banana Chips (masala) sold without a brand name.
2. Classification and taxability of Sharkara Varatty and Halwa sold without a brand name.
3. Classification and taxability of roasted and salted/salted/roasted preparations of Ground nuts, Cashew nuts, and other seeds sold without a brand name.
4. Classification and taxability of salted and masala chips of Potato and Tapioca sold without a brand name.

Issue-wise Detailed Analysis:

1. Classification and Taxability of Jackfruit Chips, Banana Chips, and Banana Chips (masala) Sold Without Brand Name:
The applicant contended that these products should be classified as "Namkeens" under HSN Code 2106.90.99 and taxed at 5% GST. However, the ruling determined that Jackfruit Chips and Banana Chips are classifiable under Customs Tariff Heading 2008.19.40, which covers "Other roasted and fried vegetable products." Consequently, these items are liable to GST at the rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

2. Classification and Taxability of Sharkara Varatty and Halwa Sold Without Brand Name:
The applicant argued that Sharkara Varatty and Halwa should be classified as "Sweetmeats" under HSN Code 2106.90.99 and taxed at 5% GST. The ruling concluded that Sharkara Varatty is classifiable under Customs Tariff Heading 2008.19.40 and liable to 12% GST. Halwa, on the other hand, is classified under Customs Tariff Heading 2106.90.99 and is liable to 5% GST [2.5%-CGST + 2.5% - SGST] as per SI No. 101 of Schedule I of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017.

3. Classification and Taxability of Roasted and Salted/Salted/Roasted Preparations of Ground Nuts, Cashew Nuts, and Other Seeds Sold Without Brand Name:
The applicant claimed these should be classified as "Namkeens" under HSN Code 2106.90.99 and taxed at 5% GST. The ruling clarified that roasted/salted/roasted and salted Cashew nuts are classifiable under Customs Tariff Heading 2008.19.10, while roasted/salted/roasted and salted Ground nuts and other nuts are classifiable under Customs Tariff Heading 2008.19.20. Both categories are liable to GST at the rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

4. Classification and Taxability of Salted and Masala Chips of Potato and Tapioca Sold Without Brand Name:
The applicant argued that these products should be classified as "Namkeens" under HSN Code 2106.90.99 and taxed at 5% GST. The ruling determined that salted and masala chips of Potato and Tapioca are classifiable under Customs Tariff Heading 2008.19.40 and are liable to GST at the rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

Conclusion:
The ruling comprehensively analyzed each product's classification under the Customs Tariff Act and determined the applicable GST rates. The products Jackfruit Chips, Banana Chips, Sharkara Varatty, Tapioca Chips, and Potato Chips are classified under Heading 2008 and taxed at 12% GST. Halwa is classified under Heading 2106.90.99 and taxed at 5% GST. The ruling emphasized the importance of specific classification under the Customs Tariff Act for determining the correct GST rates.

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