In re Shah Nanji Nagsi Exports Private Limited (GST AAR Maharashtra)
Question :- What will be the correct HSN code and consequently rate of GST applicable on ‘Ready to cook popcorn premix i.e. Popcorn Maize with edible oil and salt’, sold in retail pack size ranging from 30 grams to 350 grams.
Answer :- The correct HSN code would be 2008 19 90.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Shah Nanji Nagsi Exports Private Limited , the applicant, seeking an advance ruling in respect of the following question.
What will be the correct HSN code and consequently rate of GST applicable on “Ready to cook popcorn premix i.e. Popcorn Maize with edible oil and salt”, sold in retail pack size ranging from 30 grams to 350 grams.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
FACTS AND CONTENTION — AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
Applicant is engaged into import of maize of popcorn variety (Popcorn maize) in bulk. After import, this popcorn maize is fumigated and cleaned prior to packing. This processed clean popcorn maize, along with edible oil and salt is mixed together and packed in a pouch of fixed weight of say 350 gram, which are sold to restaurant owners and small popcorn vendors, who ultimately prepares ready to eat instant popcorn for customers.
The individual HSN Code of these ingredients are as under:
a. Popcorn Maize (HS Code — 10059000 & GST rate — Nil)
b. Edible Palm oil (HS Code — 15119020 & GST rate – 5%)
c. Flavour Salt (HS Code — 21039040 & GST rate – 12%)
STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED .
As per appellant’s view popcorn maize packed with edible oil and salt will merit classification under HSN 2008 which read as under.
2008 FRUIT, NUTS AND OTHER EDIBLE PARTS OF PLANTS, OTHERWISE PREPARED OR PRESERVED, WHETHER OR NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR SPIRIT, NOT ELSEWHERE SPECIFIED
Popcorn maize is nothing but an edible part of the plant which is prepared along with oil and salt. The eight digit HSN code for above product will be 20081990: Other
03. CONTENTION – AS PER THE CONCERNED OFFICER
