In re Sharad Sadashiv Patil (GST AAR Maharashtra)
The Authority for Advance Ruling, Maharashtra examined whether the supply of “Masala Paan” (Meetha Paan) qualifies as a composite supply with betel leaf as the principal supply and how it should be classified for GST purposes. The applicant argued that betel leaf is the core ingredient and other items are ancillary, seeking nil GST by treating the supply as composite. After examining the ingredients, preparation process, and statutory definitions, the Authority held that Masala Paan is a single, distinct edible product created by combining multiple ingredients, each essential to its identity. It was found that the supply does not involve naturally bundled supplies with a principal supply, and therefore cannot be treated as a composite supply under Section 2(30) of the GST Act. The Authority further concluded that Masala Paan is not classifiable based on individual ingredients but as a miscellaneous edible preparation. Accordingly, it was classified under HSN 2106 9099 and held taxable at 18% GST.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Ad, 2017)
The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] by M/s. Sharad Sadashiv Patil, the applicant, seeking an advance ruling in respect of the following questions.
1. Classification of Goods/ Services (Please read with connecting question no.2).
2. Whether Supply of ‘Masala Pan’ is a Composite Supply with Principal Supply as Betel Leaf and other components as ancillary supply?
At the outset, we would like to make it clear that the provisions of, both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean CGST Act and MGST Act.
