In re Abdul Aziz, M/s. Glow Worm Chips (GST AAR Kerala)
1. Whether Jackfruit chips and Banana chips (salted and masala varieties) made out of raw as well as ripe banana and sold without BRAND NAME are classifiable as NAMKEENS and are covered by HSN code 2106.90.99 and taxable under Entry 101A of schedule of Central Tax (Rate) Notification No.1 of 2017?
No. The Jackfruit Chips and Banana Chips are classifiable under Customs Tariff Heading 2008.19.40 and liable to GST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
2. Whether Sharkara Varatty sold without BRAND NAME is classifiable as SWEET MEATS and covered by HSN code 2106.90.99 and taxable under Entry 101A of Schedule of Central Tax (Rate) Notification 1/2017?
No. Sharkara Varatty is classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
3. Whether roasted and salted / salted / roasted preparations such as of Ground nuts, Cashew nut and other seeds are NAMKEENS and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1/2017?
No. Roasted / salted / roasted and salted Cashew nuts are classifiable under Customs Tariff Heading 2008.19.10 and roasted / salted / roasted and salted Ground nuts and other nuts are classifiable under Customs Tariff Heading 2008.19.20 and is liable to GST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
4. Whether salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1 of 2017?
No. The salted and masala chips of Potato and Tapioca are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA
The applicant is engaged in business of supply of goods such as Jackfruit chips, Banana chips and Sharkara Varatty without brand name. The applicant also intends to engage in the manufacture and supply of salted as well as masala chips made from Tapioca and Potato; roasted / roasted and salted / salted preparations made out of Ground nuts, Cashew nut and other seeds.
2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017(hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under.
3. The applicant requested for advance ruling on the following;
1. Whether Jack fruit chips and Banana chips (salted and masala varieties) made out of raw as well as ripe banana and sold without BRAND NAME are classifiable as NAMKEENS and are covered by HSN code 2106.90.99 and taxable under Entry 101A of schedule of Central Tax (Rate) Notification No.1 of 2017?
2. Whether Sharkara Varatty sold without BRAND NAME is classifiable as SWEET MEATS and covered by HSN code 2106.90.99 and taxable under Entry 101A of Schedule of Central Tax (Rate) Notification 1/2017?
3. Whether roasted and salted / salted / roasted preparations such as of Ground nuts, Cashew nut and other seeds are NAMKEENS and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.01/2017?
4. Whether salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.01/2017?
4. Contentions of the Applicant:
4.1. The Jackfruit Chips, Banana Chips and Sarkara Varatty are sold without brand name. Jackfruit chips are made by frying the fruit in edible oil. Banana Chips are made by slicing raw / ripe bananas into thin round pieces and frying in edible oil. Salt and Turmeric are also applied. By adding masala fried banana masala chips are prepared. Sarkara Varatty is made by frying thick pieces of banana slices in edible oil. Thereafter, they are mixed thoroughly in dense syrup of jaggery and then mixed in powder of dried ginger and cardamom. Thus Jackfruit Chips, Banana Chips and Sharkara Varatty are edible preparations and the first two are savoury and Sharkara Varatty is a Sweetmeat. Accordingly, the applicant is levying GST at the rate of 5% by classifying the commodities under Entry 101A of Schedule I of Central Tax (Rate) Notification No.01 of 2017.
4.2. They intend to deal in salted and masala chips made from Tapioca and Potato. Tapioca and Potato are sliced into round pieces and fried in edible oil. Salt is applied at the time of frying. After frying it is sold as such or after mixing it with masala. Salted chips and masala chips of Tapioca and Potato are commonly understood as Namkeens. Roasted and salted / salted / roasted preparations made of Ground nuts, Cashew nuts and other seeds are commonly understood as Namkeens. They have to be classified as Namkeens in view of Supplementary Note No. 6 of Chapter 21 of the Customs Tariff Act. They reproduced the applicable entries in Customs Tariff Act and the Notification No. 01/2017 CT(Rate) dated 28.06.2017 as follows;
