Classification of Jackfruit Chips under GST: Correct Heading 2008.19.40, 12% Tax Rate

The judgment concluded that Jackfruit Chips are classified under Customs Tariff Heading 2008.19.40, attracting a GST rate of 12%. The supplier's classification of Jackfruit Chips under HSN code 1903 was deemed incorrect. Roasted/salted preparations of ground nuts, cashew nuts, and other seeds are classified under specific headings in Chapter 20, taxed at 12%. Similarly, salted and masala chips of Potato and Tapioca are classified under Customs Tariff Heading 2008.19.40 and taxed at 12%.

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Issues Involved:

1. Classification and tax rate of Jackfruit Chips sold without a brand name.
2. Correctness of the classification of Jackfruit Chips by the supplier under HSN code 1903.
3. Classification and tax rate of roasted and salted/roasted preparations of ground nuts, cashew nuts, and other seeds sold without a brand name.
4. Classification and tax rate of salted and masala chips of Potato and Tapioca sold without a brand name.

Detailed Analysis:

Issue 1: Classification and Tax Rate of Jackfruit Chips Sold Without a Brand Name

The applicant contends that Jackfruit Chips, being an edible preparation, should be classified under HSN 2106.90.99 as "Namkeens" and taxed at 5% under Entry 101A of Schedule I of Central Tax (Rate) Notification No.1/2017. However, the judgment concluded that Jackfruit Chips fall under Customs Tariff Heading 2008.19.40, which covers "Fruit, nuts and other edible parts of plants, otherwise prepared or preserved." Consequently, Jackfruit Chips are liable to GST at the rate of 12% [6% CGST + 6% SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

Issue 2: Correctness of the Classification of Jackfruit Chips by the Supplier Under HSN Code 1903

The applicant's supplier classified Jackfruit Chips under HSN code 1903, which the applicant followed. The judgment, however, determined that this classification is incorrect. Jackfruit Chips should be classified under Customs Tariff Heading 2008.19.40, attracting a GST rate of 12%.

Issue 3: Classification and Tax Rate of Roasted and Salted/Roasted Preparations of Ground Nuts, Cashew Nuts, and Other Seeds Sold Without a Brand Name

The applicant argued that these products should be classified as "Namkeens" under HSN 2106.90.99 and taxed at 5%. However, the judgment concluded that roasted/salted/roasted and salted Cashew nuts fall under Customs Tariff Heading 2008.19.10, and roasted/salted/roasted and salted Ground nuts and other nuts fall under Customs Tariff Heading 2008.19.20. These products are liable to GST at 12% [6% CGST + 6% SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

Issue 4: Classification and Tax Rate of Salted and Masala Chips of Potato and Tapioca Sold Without a Brand Name

The applicant classified these products as "Namkeens" under HSN 2106.90.99 and taxed them at 5%. The judgment, however, determined that salted and masala chips of Potato and Tapioca fall under Customs Tariff Heading 2008.19.40. These products are liable to GST at 12% [6% CGST + 6% SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

Conclusion:

1. Jackfruit Chips: Classified under Customs Tariff Heading 2008.19.40, taxed at 12%.
2. Supplier's Classification of Jackfruit Chips under HSN 1903: Incorrect.
3. Roasted/Salted Preparations of Ground Nuts, Cashew Nuts, and Other Seeds: Classified under specific headings in Chapter 20, taxed at 12%.
4. Salted and Masala Chips of Potato and Tapioca: Classified under Customs Tariff Heading 2008.19.40, taxed at 12%.

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