Case Law Details
In re JVS Foods Pvt Ltd (GST AAR Rajasthan)
Whether the goods (Fortified Rice Kernel) manufactured and sold by the applicant will be fall under Chapter-10, Tariff item 1006 as Rice and description of goods 10061090 others (IGST Nil/5%, CGST Nil/2.5%, SGST Nil/2.5%)?
The applicant made a contention in submission that Department has treated ‘Fortified Milk’ on similar footing to normal milk in GST perspective vide Circular No. 52/26/2018-GST dated 09.08.2018. This contention is not tenable as fortified milk is a final consumable product, while FRK is not. The FRK has to be blended with normal rice in ratio 1: 100 and then only gets viable to consume. Further, the structure of milk is not changed because fortified elements like vitamins and other additives are directly mixed in milk which is fit to consume whereas in case of FRK. fortified elements are first mixed in rice flour to manufacture FRK which is further have to be mixed with normal rice.
AAR held that Fortified Rice Kernels FRK manufactured and supplied by the applicant is classifiable under HSN 19049090 and attracts GST @ 18% (SGST 9 % + CGST 9 %).
Read AAAR Order- Fortified Rice Kernels not classifiable as natural Rice: AAAR
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