In re Kitchen Express Overseas Ltd (GST AAAR Gujarat)
M/s Kitchen Express Overseas Ltd (hereinafter referred to as “the appellant”) filed an appeal under section 100 of the CGST Act, 2017 and the GGST Act, 2017 against the Advance Ruling No. Guj/GAAR/RJ32/2021, dated 30.07.2021, passed by the Gujarat Authority for Advance Ruling (GAAR). The appellant is engaged in the manufacturing and supplying of various types of flours such as Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, and Dosa Flour under the brand name ‘KITCHEN XPRESS’. These flours are mixed with certain spices and are sold as instant mix flours, which need to be further processed before consumption.
Manufacturing Process and Product Composition
The manufacturing process involves purchasing food grains and pulses, which are then cleaned, sorted, and ground into flour. Spices are mixed into the flour, and the product is packaged along with a small packet of spices for added taste. The products, referred to as ‘instant mix flours,’ require further cooking before they can be consumed, distinguishing them from ready-to-eat foods.
The appellant provided the composition of various flours, highlighting that these do not contain maize or wheat flour and, therefore, should fall under HSN code 1106, which attracts a GST rate of 5% (2.5% CGST and 2.5% SGST). The appellant argued that the instant mix flours are similar to products like ‘Sattu’ or ‘Chhatua’ which also fall under HSN code 1106.
