In re Shri, K. Swaminathan, M/S Banana chips & Halwa merchant (GST AAR Kerala)
1. Whether Jackfruit Chips, Banana Chips (made out of both raw as well as ripe banana), Banana Chips (masala) 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 the commodities Sharkarai varatty and Halwa sold without BRAND NAME are 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 of 2017?
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.
Halwa is appropriately classifiable under Customs Tariff Heading 2106 90 99 and is liable to GST at the rate of 5% [2.5%-CGST + 2.5% – SGST] as per SI No. 101 of Schedule I 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 Notification No.01/2017 Central Tax (Rate) dated 28.06.2017?
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
Shri. K. Swaminathan, M/s. Banana Chips & Halwa Merchant (hereinafter referred to as the applicant) is engaged in business as a supplier of goods such as Banana Chips, Jackfruit Chips, Sharkaraivaratty and Halwa without brand name.
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 Jackfruit Chips, Banana Chips (made out of both raw as well as ripe banana), Banana Chips (masala) 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 the commodities Sharkarai varatty and Halwa sold without BRAND NAME are 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 of 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 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 Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.?
4. Contentions of the Applicant:
4.1. The Jackfruit Chips, Banana Chips, Sarkara Varatty and Halwa 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. Halwa is made by cooking prepared maida flour in edible oil. After cooking, sugar and flavour are added and Halwa is ready for sale. Thus Jackfruit Chips, Banana Chips, Sharkara Varatty and Halwa are edible preparations and the first two are savoury and the last two-Sharkara Varatty and Halwa are Sweetmeat. Accordingly, the applicant is levying GST at the rate of 5% by classifying the commodities under Entry 101A of Schedule I of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
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 Central Tax (Rate) dated 28.06.2017.as follows;
