Cocoa content determines GST classification of jaggery-based chikkies, separating sugar confectionery from cocoa-containing products.

Jaggery-based chikkies intended for direct consumption are treated as sugar confectionery when they do not contain cocoa, so sesame, amaranth, crushed peanut, spirulina and dry fruit chikkies fall under heading 1704. Chocolate peanut chikkies containing cocoa powder are excluded from that classification and are classified separately as sugar confectionery containing cocoa under heading 1806 90 20. The classification turns on the presence or absence of cocoa in the product, which also determines the applicable GST rate under the notified tariff entries.

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Issues: (i) Whether jaggery-based chikkies not containing cocoa are classifiable as sugar confectionery under heading 1704 and taxable at 5%; (ii) Whether chocolate peanut chikkies containing cocoa powder are classifiable under heading 1806 90 20 and taxable at 18%.

Issue (i): Whether jaggery-based chikkies not containing cocoa are classifiable as sugar confectionery under heading 1704 and taxable at 5%.

Analysis: The common ingredient in the products is jaggery, and the products are marketed as solid preparations meant for direct consumption without further processing. Such preparations are treated as sugar confectioneries. The products other than chocolate peanut chikkies do not contain cocoa and therefore fall within the scope of sugar confectionery not containing cocoa under heading 1704. The applicable GST rate for goods falling under heading 1704 is 5% under the relevant entry in Notification No. 1/2017-Central Tax (Rate), as amended.

Conclusion: Yes. Sesame chikkies, amaranth chikkies, crushed peanut chikkies, spirulina chikkies and dry fruit chikkies are classifiable under heading 1704 and taxable at 5%.

Issue (ii): Whether chocolate peanut chikkies containing cocoa powder are classifiable under heading 1806 90 20 and taxable at 18%.

Analysis: Chocolate peanut chikkies contain cocoa powder and therefore do not fall within sugar confectionery not containing cocoa. Goods containing cocoa are classified under Chapter 18, and sugar confectionery containing cocoa falls under heading 1806 90 20. The applicable rate for that classification is 18% under the relevant entry in Notification No. 1/2017-Central Tax (Rate), as amended.

Conclusion: Yes. Chocolate peanut chikkies are classifiable under heading 1806 90 20 and taxable at 18%.

Final Conclusion: The classification turns on whether cocoa is present in the product. Jaggery-based chikkies without cocoa are treated as sugar confectionery under heading 1704, while the cocoa-containing variant is classified separately under heading 1806 90 20.

Ratio Decidendi: Jaggery-based preparations intended for direct consumption are sugar confectionery, and the presence of cocoa changes the tariff classification to the cocoa-containing heading.

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