TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 189
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....t the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant, Sage Organics Private Limited, is engaged in the manufacture and supply of healthy, low calorie and sugar free non-alcoholic beverage preparations intended for human consumption. The product portfolio of the applicant includes items such as Iced Tea preparations, flavoured syrups and Instant Tea mixes, which are manufactured and marketed as beverage bases to be reconstituted or diluted before consumption. 1.3 The applicant has made this application under sub-section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling in respect of following questions....
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....r 21 of the Customs Tariff. These products are prepared formulations intended to be mixed with water, soda or other liquids for preparation of beverages. They are processed food preparations and are not in the nature of luxury or demerit goods. 2.4 The Applicant also submits that extracts, essences and concentrates of tea are processed derivatives of tea intended for preparation of beverages and fall under Chapter 21. These products are manufactured using tea extracts and are supplied as beverage ingredients for human consumption. 2.5 The Applicant submits that the products in question are processed food and beverage items and do not fall under the category of luxury goods or sin goods such as alcoholic beverages, tobacco products or aerated drinks. The products are sugar free, health oriented beverage preparations and are marketed as alternatives to high sugar drinks. Accordingly, they are eligible to be considered under Schedule II of the GST rate notifications and not under Schedule III. 2.6 The Applicant submits that under GST 2.0, tax rates have been rationalized into slabs such as 5 percent, 12 percent, 18 percent and higher rates for specified goods. Based on the na....
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....d are taxable at 20 percent SGST and 20 percent CGST or 40 percent IGST under S. No. 1 covering tariff items 2202 91 00 and 2202 99 90 described as "All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured". (iv) Extracts, essences and concentrates of tea fall under Schedule I and are taxable at 2.5 percent SGST and 2.5 percent CGST or 5 percent IGST under S. No. 136, tariff item 2101 20. 3.4 In response to the query whether the products qualify under Schedule II or Schedule III of the revised GST rate notifications, the Revenue has reiterated its opinion as stated above, classifying non-alcoholic beverages and syrups under Schedule III and tea extracts and iced tea preparations under Schedule I. 3.5 With regard to the applicable GST rate under GST 2.0, the Revenue has reiterated that the rates shall be as indicated above, namely 40 percent (20 percent SGST + 20 percent CGST) for non-alcoholic beverages and syrups falling under Schedule III, and 5 percent (2.5 percent SGST + 2.5 percent CGST) for iced tea preparations and tea extracts falling under Schedule I. 4. Observations & Findings of the Authority 4.1 We have go....
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....ntifoaming agent 2 Raw mango water, citric acid, malic acid, sodium and potassium salts, natural flavour(raw mango), sucralose, colour, antifoaming agent 3 Orange electrolyte Water, citric acid, malic acid, sodium and potassium salts, nature identical flavour(orange), sucralose, colour, antifoaming agent 4 Lemon electrolyte Water, citric acid, malic acid, sodium and potassium salts, nature identical flavour(lemon), sucralose, clouding agent, antifoaming agent Ready To Drink Product Ingredients Lemon iced tea, Peach iced tea, Earl grey iced tea, Lemongrass iced tea Water, tea decoction, sugar, acidity regulator (INS330,296), sweetening agent (INS955), anti-oxidant (INS331), contains permitted class 2 preservatives (E211), nature identical flavour Orange vitamin water Water, thickener (INS440), nature identical flavour (orange), acidity regulator (INS330,296), vitamins (A,B3,B6,B12,C,D,E), preservatives(E211), sucralose Litchi vitamin water water, thickener (INS440), nature identical flavour (litchi), acidity regulator (INS330,296), vitamins (A,B3,B6,B12,C,D,E), preservatives(E211), sucralose The above list covers the whole ran....
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....r 40 percent IGST under S. No. 1 covering tariff items 2202 91 00 and 2202 99 90 described as "All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured". 4.6 At the very outset we must make it clear that we have not found any tariff item numbered as '22029020' as mentioned by the applicant against 'Non-alcoholic beverage/Iced Tea preparation'. The closest possible match for the number in the tariff list is 22029920 which specifies 'fruit pulp or fruit juice based drinks'. We are reproducing the relevant portion of the Customs Tariff Act, 1975. 2202 WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT, NUT OR VEGETABLE JUICES OF HEADING 2009 2202 10 - Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured : 2202 10 10 --- Aerated waters 2202 10 20 --- Lemonade 2202 10 90 --- Other - Other: 2202 91 00 -- Non alcoholic beer ....
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....ese extracts, essences or concentrates or with a basis of tea or mate : 2101 20 10 --- Instant tea 2101 20 20 --- Quick brewing black tea 2101 20 30 --- Tea aroma 2101 20 90 --- Other 2101 30 - Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof : 2101 30 10 --- Roasted chicory 2101 30 20 --- Roasted coffee substitutes 2101 30 90 --- Other 4.7 Now we will proceed to examine the correctness of the tariff item no. suggested by the applicant against each of the products featured in the questions placed by the applicant and rate of tax thereof. Non-alcoholic beverages: Under this category the applicant manufactures products like Mojito, Rose lemonade, Lavender honey, Cucumber mint, Orange vitamin water and Litchi vitamin water. The process of preparation of all the above products is the same. As per the process flowchart supplied by the applicant's representative, all dry ingredients except citric acid as per table in Paragraph 4.2 are added to required volume of water and are mixed well. Then colour and measured citric acid are added to the mixture and ....
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....e covered by serial no. 2 of Schedule III. Serial no. 3 of the schedule refers to Caffeinated Beverages only. The exclusion clause of serial no. 2 is also not applicable for the products discussed under this head since the goods specified under serial no. 148, 149, 150 and 151 of Schedule I are not the goods under question. In our considered view, the non-alcoholic beverages as specified by the applicant will come under serial no. 2 of Schedule III and as such will be taxed @ 20% CGST + 20% SGST. Iced Tea preparation & Extracts, essences and concentrates of tea: The applicant prepares different kinds of iced tea like Lemon iced tea, Peach iced tea, Earl grey iced tea, Lemongrass iced tea. For preparation of iced tea, 100 gram of water is boiled up to 90 to 95 degree centigrade temperature. Then 6 gram of required tea is added to the boiled water. The mixture is further boiled for 10minutes at a low flame. Then it is allowed to cool down for 5 minutes. The liquid is strained and kept for further cooling. Then the cold preparation is packed. From the process of preparation and the list of ingredients it appears that the products under the heading 'Iced Tea preparation & Extr....