In re M/s Sri Kanyakaparameshwari Oil Mills (GST AAR Karnataka)
a) What is rate of tax for ‘Perfumed Deepam Oil’ which is prepared by mixing Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil with perfurme or chemical and used for lighting lamp for God (not for cooking) with HSN Code?
The “Perfume Deepam Oil” (Not for Cooking) – which is prepared by adding perfume to either a mixture of Gingely Oil, Palmoline Oil and Rice Bran Oil or to any one of the above oils – is covered under HSN 1518 & is taxable at 6% under CGST Act, 6% under KGST Act and 12% under the IGST Act.
b) What is rate of tax for ‘Non- perfumed Deepam Oil’ which is prepared by mixing Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil without perfurme or chemical and used for lighting lamp for God (not for cooking) with HSN Code?
“Deepam Oil” (Not for Cooking)- which is prepared by either a mixture of Gingely Oil, Palmoline Oil and Rice Bran Oil or any of the above oil and ‘not for cooking’ would fall under Chapter Heading 1518 and attract CGST @ 6%, KGST ® 6% and IGST @ 12%.
c) What is rate of tax for a mixture of Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil?
Each of the oils, namely Palmoline Oil falling under Chapter heading 1511, Gingely Oil & Rice Bran Oil falling under Chapter Heading 1515 and the mixture of the said edible oils falling under Chapter Heading 1517 would attract CGST @ 2.5%, KGST 2.5% and IGST @ 5%.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
M/s Sri Kanyakaparameshwari Oil Mills, (called as the ‘Applicant’ hereinafter), No.14, 12th Cross, Ganesh Temple Road, Bendrenagar, Kadirenahalli, Bengaluru – 560070, having GSTIN number 29AAEFS1478A1ZA has filed an application for Advance Ruling under Section 97 of CGST Act,2017 and KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs.5,000-00 each under the CGST Act and the KGST Act.
2. The Applicant is a Partnership concern and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following questions:
a) What is rate of tax for “Perfumed Deepam Oil” which is prepared by mixing Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil with perfurme or chemical and used for lighting lamp for God (not for cooking) with HSN Code.
b) What is rate of tax for “Non-perfumed Deepam Oil” which is prepared by mixing Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil without perfurme or chemical and used for lighting lamp for God (not for cooking) with HSN Code.
c) What is rate of tax for a mixture of Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil.
3. The applicant furnishes some facts relevant to the stated activity:
a. The applicant states that they are into the business of manufacturing and trading of edible oils and non-edible oils.
b. They state that they are desirous of selling three commodities and hence intend to know about the rate of tax applicable on these commodities.
i. “Perfume Deepam Oil” (Not for Cooking) – which is prepared by adding perfume to either a mixture of Gingely Oil, Palmoline Oil, Rice Bran Oil or any of the above oil
ii. “Deepam Oil” (Not for Cooking) – which is prepared by either a mixture of Gingely Oil, Palmoline Oil, Rice Bran Oil or any of the above oil but without adding any perfume, and
iii. A Mixture of Gingely Oil, Palmoline Oil, Rice Bran Oil or any of the above oil
PERSONAL HEARING: / PROCEEDINGS HELD ON 30.08.2018.
4. Sri. B V Nagesh, Partner of the Applicant firm attended the personal hearing before the Authority, explained about their business and stated that the applicant intends to know the classification of their aforesaid three commodities and the corresponding rate of GST in respect of each of the products.
FINDINGS & DISCUSSION:
5. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri B V Nagesh, Partner of the Applicant firm during the personal hearing. We also considered the issue/s involved on which advance ruling is sought by the applicant along with relevant facts of the issue/s.
5.1 The applicant seeks advance ruling on the questions mentioned at para 2 supra. They intend to know the classification of their products and the applicable GST rate on each of their products. The Applicant, even though, has not put the questions in proper order, we proceed to take up the questions in the natural sequential order in respect of each product one at a time and answer the same in respect of the classification and the applicable rate of GST.
5.2 Notification No.1/2017- Integrated Tax (Rate) dated 28.06.2017 (hereinafter called “said notification”) at Explanation (iii) to the said notification provides that “Tariff item”, “sub-heading”, “heading”, and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975. Further, Explanation (iv) provides that the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
5.3 The first issue that we take up is in relation to the classification of the individual oils of Gingely Oil, Palmoline Oil, Rice Bran Oil & the mixture of any two or all the three oils. The applicant has raised this issue in their third question. The relevant classification of the said items has been specified in the First Schedule to the Customs Tariff Act, 1975. Chapter 15 of the said Act deals with Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes. Therefore the classification of the required items, in terms of Chapter 15 of the said Act, is as under.
