Case Law Details
Vimal Agro Products Pvt. Ltd. & Anr. Vs Union of India & Ors (Gujarat High Court)
The case of Vimal Agro Products Pvt. Ltd. & Anr. Vs Union of India & Ors before the Gujarat High Court revolves around the taxation of “mango pulp” under the Goods and Services Tax (GST) regime. The petitioners, Vimal Agro Products Pvt. Ltd., supply mango pulp to a 100% Export Oriented Unit which then exports it outside the country after minor processing or repacking. The issue at hand is the rate of GST applicable to mango pulp.
Initially, under the GST regime, fresh mangoes were exempt from GST while dried mangoes attracted a tax rate of 12%. However, in the 22nd GST Council Meeting held on 6th October 2017, it was decided to reduce the tax rate on sliced and dried mangoes from 12% to 5%. This decision led to the insertion of a new entry, Entry 30A, in the schedule, prescribing a 5% GST rate for mangoes sliced and dried.
The petitioners interpreted mango pulp as falling under the category of mango sliced and dried and thus paid a 5% GST rate. This interpretation was supported by an email from the CBEC Mitra Helpdesk confirming a 5% GST rate for mango pulp.
However, in a subsequent GST Council meeting in June 2022, it was clarified that there existed a third category of mangoes in the Harmonized System of Nomenclature (HSN) other than fresh and dried mangoes, which was always intended to be taxed at 12%. As a result, a new entry (Entry 16) was inserted, specifying a 12% GST rate for mangoes other than sliced and dried.
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