In re Kalis Sparkling Water Private Ltd. (GST AAR Tamilnadu)
1.Whether their product K juice Grape fail under category of fruit beverages or fruit based drinks?
Not answered as not covered under Section 97(2) of the Act.
2. What is the rate of tax and HSN code for their prodct name?
The product ‘K Juice Grape’ falls under the category of “Other” under CTH 2202 10 90. The applicable rate of tax is 14% CGST vide SI.No. 12 of Schedule IV under Notification No. 1/2017-Central Tax (Rate) and 14% under SGST at 14% vide SI.No. 12 of Schedule IV under Notification No.II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended.
3. Is there any preserved percentage of fruit or pulp in the beverages to call them as carbonated fruit beverages or drinks under GST Act?
Not answered as not covered under section 97(2) of the Act.
AAAR Order:‘K Juice Grape’ is a Carbonated fruit beverage & classifiable under CTH ‘2202 1090-Other
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMILNADU
Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. Kalis Sparkling Water Private Ltd., No. E72-E79 AND E88-E95, SIPCOT INDUSTRIAL COMPLEX (herein after referred as ‘Applicant’) is registered under the GST Act 2017 vide GSTIN No. 33AADCK8591Q1ZR. The Applicant has sought Advance Ruling on the following questions:-
1. What is the rate of tax and HSN Code for fruit beverages or drinks with HSN Code?
2. The definition under the FSSAI Act in section 2.3.3.A can be taken as an aid to classify the product? If so kindly clarify.
3. Is there any persevered percentage of fruit or pulp in the beverages to call them as carbonated fruit beverages or drinks under the GST Act?
The applicant submitted a copy of challan evidencing payment of application fees of Rs.5, 000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2. The applicant stated that they are going to manufacture beverages with fruit juices and without milk. They understand from the industry that taxguru.in fruit pulp or fruit juice based drinks fall under HSN code 22029020 liable to be taxed at 12%. They state that fruit juice based drinks should be called as “Carbonated beverage with fruit juice” as per Para 3A definition in FSSAI Act.
3.1 The applicant was extended an opportunity to be heard in person on 28.08.2019 and was heard. They gave a written submission stating that their product is carbonated beverages with fruit juice and furnished a test report on the content. They stated that their product has fruit juice and been carbonated for preservation sake. They state the grape juice content will vary from 10-15%. They also referred to the Supreme Court case in APPY Fizz of Kerala VAT. They stated that the product is under development and the brand name has been finalized. They undertook to submit a detailed manufacturing process with quantities of each raw material in 2 weeks. The Centre jurisdictional officer stated that the comments have been submitted in writing. As the questions are generic, the applicant will repose the question specific to their products and the Central Tax Officer will give comments on the fresh submissions made.
3.2 In the written submission, the applicant stated that they are Kalimark, a 103 year old beverage manufacturing company. They are engaged in manufacture of new products (carbonated fruit drink/fruit juice without adding milk) and the sample has been taken which will be sold in the market name as K Juice Grape. The method of preparation of the said carbonated beverages with fruit juice is stated as follows:
Processing RO Water ——–> Preparation of Sugar Syrup Solution ——–> Thermal Process ——–> Add Concentrate (Recipe) ——– > Add Thermally Processed Fruit Juice Concentrate ——–> Blending ——–> Carbonization ——–> Filling ——–> Bottling ——–> Capping ——–> Labelling ——–> Shrink Wrapping.
And the ingredients of the manufactured carbonated fruit juice are as follows:
