In re Tvl. Varalakshmi Starch Industries Private Limited (GST AAR Tamilnadu)
The Authority for Advance Ruling, Tamil Nadu, examined an application filed by a registered manufacturer of tapioca starch and sago seeking clarification on whether a commodity known as “sago pulp” exists under the GST regime, and if so, its classification, HSN code, and applicable tax rate. The applicant stated that certain tapioca sago manufacturers in Namakkal district were allegedly purchasing “sago pulp” as a raw material in large quantities, whereas, according to the applicant, tapioca tuber (cassava) was the only raw material used for producing tapioca sago. The applicant contended that there was no known commodity called “sago pulp” under the GST tariff and sought an advance ruling to ascertain its status.
During the personal hearing, the applicant reiterated that they manufacture tapioca starch and sago from tapioca tubers and also supply residues arising as by-products. The applicant clarified that they were unaware of “sago pulp” being used as a raw material and approached the Authority only to determine whether such a commodity existed under GST. The Members of the Authority informed the applicant that the questions raised were not related to the applicant’s own supply of goods or services but concerned practices allegedly followed by other manufacturers. The applicant acknowledged this legal position during the hearing.
