GST Rate for Mango Pulp Exports Confirmed at 12%, Petitioners Ordered to Comply with Revised Tax Notification

SC upheld a 12% GST tax rate for Mango Pulp exports, rejecting petitioners' challenge to a retrospective tax notification. The court referenced a prior Andhra Pradesh HC decision supporting the enhanced tax rate. Petitioners were directed to pay the revised tax, with the rule returnable on 01.12.2023 and modified service requirements for respondents.

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Issues involved: Interpretation of notifications regarding tax rates on Mango Pulp in the GST regime.

Summary:
The petitioners, engaged in the supply of Mango Pulp as a 100% export-oriented unit, argue that Mango Pulp falls under HSM 08.04 in Chapter 8 of the HSM. They refer to the exemption notification dated 28.06.2017, which exempted certain fresh fruits from intrastate tax, including Mangoes. Subsequent notifications introduced a 12% levy and reclassified 'Dried Mangoes.' Following the 22nd GST Council Meeting, Mango Sliced Dried was placed in a 5% tax slab. The petitioners have been paying tax at 5% based on these notifications. However, a recent notification dated 13.07.2022 demands tax at 12%, creating a retrospective tax liability issue for the petitioners. They argue that a clarification cannot amend the entry in question.

In response, the Senior Standing Counsel argues that a similar issue was addressed in a decision by the Andhra Pradesh High Court, where an enhanced tax rate was upheld for the relevant period. The petition is disposed of, and the petitioners are directed to pay the enhanced tax rate. The Rule is returnable on 01.12.2023, with service waived for some respondents and permitted through E-mail for others.

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