In re HIC-ABF special foods (P) Ltd. (GST AAR Kerala)
In the recent ruling by the Kerala Authority for Advance Ruling (AAR) on the application of M/S HIC-ABF Special Foods Pvt. Ltd., the primary issue examined was the classification of various ready-to-eat food items for GST purposes. The applicant, engaged in producing ready-to-eat seafood and food products, sought confirmation on the appropriate HSN codes under which their products should be classified. These products, manufactured without preservatives using retort technology, have a long shelf life and are ready to eat upon opening. HIC-ABF proposed classification under specific HSN codes such as 2005, 2008, and 1602, citing their composition and preparation methods.
The AAR, however, determined that these classifications were not entirely suitable. Instead, based on the General Rules for the Interpretation of the Tariff and the Customs Tariff Act, the AAR decided that many of the ready-to-eat items should be classified under HSN code 21069099, which covers “food preparations not elsewhere specified or included.” The rationale was that the products fell more precisely into this broad category, being miscellaneous edible preparations rather than specific vegetable or meat preparations. Additionally, the ruling addressed products like “Prawn Chutney Powder,” placing them similarly under 21069099 due to their ready-to-eat nature. Certain exceptions were noted, such as boiled items that require further preparation, which received a different classification based on their specific characteristics. The ruling provides clear guidance on the classification of similar products, aiding in consistent application of GST rates across food products.
