In re Shri. N. M. Thualseedharan, M/s. N.V. Chips (GST AAR Kerala)
1. Whether Jackfruit Chips 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 Notification No.01/2017 Central Tax (Rate) dated 28.06.2017 ?
No. The Jackfruit Chips 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.
2. Whether the classification of Jackfruit Chips by my supplier under HSN code 1903 is correct?
No.
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
ADVANCE RULING No. KER/114/2021 Dated 26-05-2021
The applicant is engaged in business as a supplier of Jackfruit Chips without brand name. The applicant purchases Jackfruit Chips from other registered persons making Jackfruit Chips. They levy tax at the rate of 5% under HSN Code 1903 and accordingly the applicant also classified it under the same HSN Code and levied tax at the rate of 5%. The applicant also intends to engage in the supply of salted as well as masala chips made from Tapioca and Potato, roasted / roasted and salted / salted preparations made out of ground nuts, cashew nut and other seeds.
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 jack fruit chips 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 Notification No.01/2017 Central Tax (Rate) dated 28.06.2017 ?
2. Whether the classification of jack fruit chips by my supplier under HSN code 1903 is correct?
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 Central Tax (Rate) Notification No.1 of 2017?
4. Contentions of the Applicant:
4.1. The applicant submits that Jack fruit chips are made by frying the fruit in edible oil and since is an edible preparation, it is to be classified under HSN 2106.90.99 and liable to be taxed at 5% under Entry 101 A -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;
