In re Juzi Fruits Private Limited (GST AAR Karnataka)
1. (a) (i) Supply of sealed fruit bowl containing only cut fresh fruits without addition of any preservatives or additives which are sold under brand name is covered under entry no.59 of Schedule I of Notification No.1/2017 -Central Tax (Rate) dated 28.06.2017 Vide HSN 1106 and is liable to tax @ 2.5% under CGST Act and 2.5% under the SGST Act, 2017.
(ii) The Fruit bowl containing both cut fresh fruits and dry fruits and nuts is taxable at rate applicable to the supply of dry fruits and nuts.
(b) As already discussed, the tax rate applicable on dry fruits and nuts cannot be provided as the exact nature of the dry fruit or nut is not provided.
2. The applicant is eligible for input tax credit on the tax paid on the inward supplies of inputs and input services involved in the supply which is taxable.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98(4) OF THE KGST ACT, 2017
M/s. Juzi Fruits Private Limited (called as the ‘Applicant’ hereafter) No.473, Formed in Survey No. 182, Begur Hobli, Koramangala, Bengaluru-560095 having GSTIN 29AAECJ2878A1ZJ, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KG ST Act, 2017 read with Rule 104 of KGST Rules, 2017 in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
2. The Applicant is a Private Limited Company registered under the provisions of the Central Goods and Services Tax Act, 2017 as well as the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively) is engaged in purchase and sale of fresh fruits-individually or mixtures of fruits in a bowl ready to eat, some packaging containing only fresh fruits and some with added dry fruits and nuts.
3. The applicant has sought advance ruling in respect of the following questions:
a. Appropriate HSN code applicable to supply of
i. Fruit bowl containing only cut fresh fruits (individually or mixture of different fruits).
ii. Fruit bowl containing both cut fresh fruits and dry fruits and nuts.
b. GST tax rate applicable for each of the classified goods above?
c. Eligibility to input tax credit of GST paid on plant and machinery and expenses relating to the business in case the end product is classified as belonging to 0% tax rate under GST?
4. Admissibility of the application: The question is about “classification of any goods or services or both and hence is admissible under Section 97(2) (a) of CGST Act, 2017.
BRIEF FACTS OF THE CASE:
5. The applicant furnishes some facts relevant to the issue:
5.1 The Applicant states that they are engaged in the process of buying, processing and selling of various varieties of cut fresh/dry fruits and nuts ready for human consumption under specific brand name both directly to customers and other vendors.
5.2 Detailed operations are as under:
a) Buying from the market fresh/dry fruits.
b) Process involved in making the product ready for sale.
