Papad classification turns on common parlance and exemption limits for ready-to-eat fried products under GST.

Fried papad products of different shapes and sizes were examined for classification under Tariff Item 1905 90 40 versus the residuary edible preparations heading. The term "papad" was treated as a common-parlance concept because GST law does not define it, and the shape of the product was not considered decisive. The specific tariff entry for papad was found to prevail over the residuary heading, but the exemption in Entry 96 of Notification No. 2/2017 applies only to papad requiring further roasting or frying. Ready-to-eat fried papad with masala was therefore outside the exemption and liable to GST at the notified rate.

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Issues: Whether fried papad products of different shapes and sizes are classifiable as papad under Tariff Item 1905 90 40 and entitled to exemption under Entry 96 of Notification No. 2/2017-Central Tax (Rate), or whether they fall under the residuary edible preparations heading and attract GST at 18%.

Analysis: The product was examined in the context of its ingredients, manufacturing process, use, and market identity. The term "papad" is not defined in the GST law, so its meaning had to be gathered from common parlance and trade understanding. The shape of papad was held not to be decisive, since modern manufacture permits papad to be produced in varied shapes and sizes while retaining the same essential character. The ingredients and preparation of the goods were found to be broadly similar to papad, but the deciding factor was the notification entry. Entry 96 of Notification No. 2/2017-Central Tax (Rate) covers papad only when it is in a form requiring further roasting or frying and not when it is already fried and ready to eat. The impugned goods were found to be ready-to-eat fried papad with masala and therefore outside the exemption entry. At the same time, Tariff Item 1905 90 40 was held to be the specific classification for papad, which prevails over the residuary heading 2106. Once classified under Heading 1905, the goods attract the rate prescribed under Schedule III of Notification No. 1/2017-Central Tax (Rate).

Conclusion: The product is classifiable as papad under Tariff Item 1905 90 40, but the ready-to-eat fried form is not covered by the exemption entry and is liable to GST at 18%.

Final Conclusion: The advance ruling was modified and the assessee's product was held to fall under the specific papad tariff entry with tax payable at the notified rate.

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