RATE OF TAX ON CAKE GEL USED IN BAKERY INDUSTRY

[Sadanand Bulbule]

Dear experts

"Cake gels" as food additives and premixes are used in bakery industries to improve the quality, texture and aeration of sponge cakes. Cake gel being a functional additive used in bakery applications. It is not a flavouring,emulsifier, or stand alaone bakery item.

What is the HSN and rate of GST on such cake gels ? Also indicate supporting AARs, if any.

AI Summary

Classification under food-preparations residuary heading supports standard GST treatment for cake gels used as bakery additives.
Classification of cake gels hinges on their character as functional bakery additives rather than standalone confectionery; despite divergent AARs classifying similar gels under sugar-preparation headings, application of interpretive principles-preference for specific entries, essential character and function, burden on revenue, and benefit of doubt to the assessee-supports classification under the residuary food-preparations heading, a position that is commercially defensible but fact-sensitive and reliant on comparison with precedents.