Case Law Details
In re Mr. P.M. Sankaran (GST AAR Kerala)
Peanut candy and Gingelly candy, uniappam, neyyappam, kinnathappam, kalathappam, rice ball (ariyunda) and avil vilayichathu are taxable @5% GST and achappam, kuzhalappam, madakku, pottiappam, thatta / thattavada and murukku are taxable @12% GST if sold under a brand / trade name and @5% otherwise. Baked chips are taxable @12% GST.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA
The applicant M/s. Fresh Products is a manufacture of traditional snacks from Kerala. The products are manufactured with ingredients such as Bananas, Potatoes, Tapioca, Nuts, Dhal, Sugar, Chillies, Spices, Wheat, Rice, Ghee, Coconut oil etc. Applicant requested advance ruling on the following:
GST rate for Peanut Candy; Gingelly Candy; Uniappam; Neyyappam; Kinnathappam; Kalathappam; Rice Ball (ariyunda); Achappam; Kuzhalappam; Madakku; Pottlappam; Thatta/Thottavada; Murukku; Avil Vdayichathu; Baked Chips.
The authorized representative of the applicant was heard. It is pointed out that the products are having trade mark “chipo”. The ingredients used by the manufacture for the difference products are shown below:
| SI. No. | Name of the products | Ingredients |
| 1 | Peanut candy | Peanut, jaggery syrup, cardamom powder |
| 2 | Gingelly candy | Gingelly seed, jaggery syrup, cardamom powder |
| 3 | Uniappam | Rice flour, jaggery, coconut oil, coconut |
| 4 | Neyyappam | Rice flour; jaggery, coconut oil, ripe banana, coconut |
| 5 | Kinnathappam | Rice flour, jaggery, coconut milk, chana dhal, cardamom powder |
| 6 | Kalathappam | Rice flour; jaggery, shallots, coconut oil |
| 7 | Rice Bali (ariyunda) | Rice flour, jaggery, ghee, cardamom powder |
| 8 | Achappam | Rice flour; whole wheat flour, coconut oil, sugar, salt |
| 9 | Kuzhalappam | Rice flour; gingelly seed, salt, coconut oil |
| 10 | Madakku | Refined wheat flour, palmolien, sugar, salt |
| 11 | Pottiappam | defined wheat flour; palmolien, gigelly seed, cumin seed, salt |
| 12 | Thatta / thattavada | Refined wheat flour, rice flour, chana dhal, palmolien, gigelly seeds, curry leaves, salt |
| 13 | Murukku | Rice flour, palmolien, salt |
| 14 | Avil Vilayichathu | Rice flakes, jaggery, ghee, cardamom powder |
| 15 | Baked chips | Vegetables/ fruits toasted / baked |
The Peanut candy and Gingelly candy are confectionery products made by heating a variety of sugars and thereby coveted under HSN 1702.
The Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball (ariyunda) and Avil Vilayichathu are traditional sweet/snack of Kerala. It is deep fried fitters made with rice and jaggery: Hence these items comes under the category of “sweetmeats” with HSN 2106 90 covered under Entry 101 of 1st schedule.
The Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta/Thattavada and Murukku etc are savouries having a salty or spicy flavour rather than a sweet one. Hence these items comes under the category of “namkeens” with HSN 2106 90? Therefore if the items are sold under trade / brand name, it will covered under Schedule ll of Sl.No.46 and otherwise 101A of the 1st Schedule,
The Baked Chips are come under HSN 2008 19 40 “other roasted and fried vegetable products”
In view of the observations stated above, the following rulings are issued:
01) Peanut candy and Gingelly candy are taxable at the rate 5% GST vide Entry No.92 of 1st Schedule (Notification No.1/2017/CT (Rate) dtd.28-06-2017 & SRO.No.360/2017 DTD.30-06-2017).
02) Uniappam, Neyyappam, Kinnathappam, Kalathappam, Rice Ball (ariyunda) and Avil Vllayichathu are taxable at the rate of 5% GST vide Entry No. 101 of the 1st Schedule (Notification No.1/2017/CT(Rate) dtd.28-06-2017 & SRO, No.360/2017 DTD.30-06-2017).
03) Achappam, Kuzhalappam, Madakku, Pottiappam, Thatta / Thattavada and Murakku are taxable at the rate of 12% GST if sold at brand / trade name vide Entry 46 of the 2nd Schedule. If these items are sold in unit container without brand name or with a brand name on which any actionable claim or enforceable rights in respect of such brand name has voluntarily forgone are taxable at the rate of 5% vide Entry No. 101A of the Ist Schedule. (Notification No.34/2017/CT(Rate) & SRO, No.727/2017}
04) Baked Chips are come under HSN 2008 19 40 and taxable at 12% vide Entry 40 of 2nd Schedule. (Notification No.1/2017/CT(Rate) dtd.28-06-2017 & SRO.No.360/2017.)
