In re AB Mauri India Private Limited (GST AAR Karnataka)
Karnataka AAR Rules Cake Gel Falls Under HSN 2106.90.99, GST at 18%
The Karnataka Authority for Advance Ruling (AAR) has held that “Cake Gel,” a bakery additive marketed under the brands “Rich Cake Gel” and “Prime Classic Cake Gel” by AB Mauri India Pvt. Ltd., is classifiable under HSN 2106.90.99 as a miscellaneous edible preparation, attracting GST at 18%.
Product and Purpose
The applicant intends to introduce “Cake Gel” in the Indian market. The product is used in cake batter to enhance quality, making cakes broader, fluffier, and with a uniform crumb texture. It stabilises batter aeration and is intended for sponge and rich cakes.
Issue for Determination
The applicant sought an advance ruling on the classification of “Cake Gel” and the applicable GST rate. They contended that the product should be classified under HSN 1517.90.90, which covers edible mixtures or preparations of animal, vegetable, or microbial fats or oils other than margarine, claiming that its main ingredients—emulsifiers and humectants—are glycerides of fatty acids derived from plant sources.
Legal Framework for Classification
The AAR referred to Notification No. 01/2017-Central Tax (Rate) dated 28 June 2017 and its explanatory provisions linking tariff classification to the Customs Tariff Act, 1975. The interpretation rules, section notes, chapter notes, and the Harmonised Commodity Description and Coding System Explanatory Notes were applied.
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