Case Law Details
In re Rasi Nutri Foods (GST AAR Tamilnadu)
Concessional GST rates not applicable to activity of manufacture and supply of fortified rice kernels till Sep 30, 2021
In Rasi Nutri Foods [Order No. 39 AAR/2021 dated October 21, 2021] Authority for Advance Ruling, Karnataka (KAAR) held that Notification No.39/2017 CT(R) dated 18.10.2017 (Concessional Rate Notification) read with G.O.M’s No. 140 dated October 17, 2017, Department is not applicable to the activity of manufacture and supply of Fortified Rice Kernels (FRK) to rice mills designated by Tamil Nadu Civil Supplies Corporation for period up-to September 30, 2021 as it does not amount to food preparation.
The Rasi Nutri Foods (“the Applicant”), engaged in the business of manufacture and supply of nutrition products including FRK, has been awarded the contract for the supply of FRK by the government of Tamil Nadu. In terms of the tender document the Applicant has to supply 164 MTs of RK to make Fortified Rice at the designated rice miller’s locations, for a period of 2 years.
The Applicant has sought an advance ruling on the issue of whether Concessional Rate Notification read with G.O.Ms. No. 140 issued by the Commercial Taxes and Registration Department, would be applicable to the Applicant’s activity of manufacture and supply of FRK to the Tamil Nadu Civil Supplies Corporation pursuant to the pilot scheme on ‘Fortification of Rice & its distribution under the Public Distribution System’ project launched by the Central Government.
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