GST Rate on Hand made besan Laddu (Desi Ghee)

[TANAY GHILDIYAL]

We are selling hand made desi ghee besan laddu and are currently charging 18% gst . My query is regarding the rate , kindly let me know if we are charging gst correctly or it will fall under 5% gst rate and if so please mention HSN code for the same.

[KASTURI SETHI]

Desi Ghee Besan Laddu are sweet meats and hence are covered specifically under HSN 2106.90.99 as sweet meats attracting GST rate @ 18%.

It is seen that when two rates are available for the same goods ( one higher and on lower), Normally 5% rate is meant for those suppliers who sell unbranded and without container (in loose form).

In case you fall in the second category and are paying 18 %, you should make a representation to the Board for clarification. It is very risky to supply goods at lower rate on your own once you have decided to pay at the higher rate i.e. 18%

AI Summary

GST rate on sweetmeats: supply mode affects classification and suppliers should seek Board clarification before changing rates.
Whether hand made desi ghee besan laddu attracts the higher GST rate or a lower concessional rate depends on classification as a sweetmeat and on the mode of supply: packaged/branded supplies are treated under the sweetmeats classification, while unbranded loose supplies are often treated under a lower rate; suppliers uncertain of their correct rate should seek formal clarification from the Board to avoid compliance risk.