In re Halwa Haweli (GST AAR Kerala)
In the case of In re Halwa Haweli, the Kerala Authority for Advance Rulings (AAR) addressed the classification and tax rate applicable to branded halwa under the GST regime. The applicant, engaged in selling halwa, sought clarification on whether halwa packed and marketed under their brand name could be classified as “Namkeens” under HSN Code 2106 90 and taxed at 12% as per Entry 46 of Schedule II of Notification No. 1/2017 Central Tax (Rate). However, AAR Kerala ruled that halwa falls under the category of sweetmeats, which are listed in Entry 101 of Schedule I of the same notification, and attracts a 5% tax rate. The AAR rejected the applicant’s argument to classify halwa as “Namkeens,” noting that Schedule I specifically includes sweetmeats under HSN 210690. This ruling applies whether the halwa is packed by the applicant or procured from third-party manufacturers. Therefore, branded halwa does not fall under the classification of “Namkeens,” and it is instead subject to the lower tax rate prescribed for sweetmeats. This decision establishes clarity on the tax treatment of traditional sweets like halwa when sold under brand names.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KERALA
