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2020 (2) TMI 98 - AAR - GSTClassification of goods - unbranded mixture of flour of pulses and grams i.e. leguminous vegetables and cereal flours - whether fall under the HSN Code 1106 and 1102 respectively? - circular no 80 dt. 31-12-2018 - rate of GST. HSN Code - Type I (Flour of Grams-80%, Flour of Maize-10% and Flour of rice-10%) - Type II (Flour of Grams-70%, Flour of Peas-10%, Flour of Maize-10% and Flour of Rice-10%) - Type III (Flour of Grams-50%, flour of Peas-20%, Flour of Maize-20% and Flour of Rice-10%) - Type IV (Flour of Peas-70%, Flour of Maize-15% and Flour of Rice-15%) - Type V (Flour of Grams-25%, Flour of Peas-25%, Flour of Maize-25% and Flour of Rice-25%) - HELD THAT - Classifiable under CTH 11061090. HSN Code - Type VI (Flour of Rice-95% and Flour of Urad-5%) - HELD THAT - CTH 11029090. Applicable rate of tax - products are packed with such a registered Trade Mark in unit containers - Type I, II, III, IV and V (CTH 11061090) - HELD THAT - 2.5% CGST as per Sl.No. 59 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl.No. 59 of Schedule I of Notification Ms. No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. Applicable rate of tax - products are packed with such a registered Trade Mark in unit containers - Type VI (CTH 11029090) - HELD THAT - 2.5% CGST as per Sl.No. 55 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl.No. 55 of Schedule 1 of Notification Ms. No. II(2)/CTR/532(d-4)/2017, vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. Applicable rate of tax - If the products are packed without a registered brand name - Type I, II, III, IV and V (CTH 11061090) - HELD THAT - Nil CGST as per Sl.No. 78 of the Notification No. 2/2017-C.T.(Rate) dated 28.06.2017 as amended and nil SGST as per Sl.No. 78 of Notification No. II(2)/CTR/532(d-5)/2017 vide G.O. (Ms) No. 63 dated 29.06.2017 as amended. Applicable rate of tax - If the products are packed without a registered brand name - Type VI (CTH 11029090) - HELD THAT - Nil CGST as per Sl.No. 74 of the Notification No. 2/2017 -C.T. (Rate) dated 28.06.2017 as amended and nil SGST as per Sl.No. 74 of Notification No. II(2)/CTR/532(d-5)/2017 vide G.O (Ms ) No. 63 dated 29.06.2017 as amended.
Issues Involved:
1. Classification of unbranded mixture of flour of pulses and grams under HSN Code 1106 and 1102. 2. Clarification of GST rate for flour mixture of grams, pulses, leguminous vegetables with cereal flour/rice flour and its HSN Code. Detailed Analysis: 1. Classification of Unbranded Mixture of Flour of Pulses and Grams: The applicant manufactures flour of pulses and grams, which are sold without any brand name and claim exemption. The products sometimes include a minimal amount of cereal/rice flour. The applicant argues that the blending of these flours does not create a commercially distinct product and should still fall under HSN Code 1106 for leguminous flours and HSN Code 1102 for cereal flours, which are exempted from GST as per Notification No. 2/2017-C.T.(Rate) dated 28.06.2017. The Central Authority, however, contends that blending these flours for preparing savories constitutes "Preparation of flour" and should be classified under HSN 1901, which is taxable at 18%. 2. Clarification of GST Rate for Flour Mixture: The applicant provided various mixtures of flours with specific ratios and sought clarification on their classification and applicable GST rates. The mixtures include combinations of gram flour, pea flour, maize flour, rice flour, and urad flour in different proportions. The Authority examined the classification based on the Customs Tariff Act, 1975, and the HSN explanatory notes. It was determined that products obtained from milling cereals and dried leguminous vegetables are classified under Chapter 11 if no further processing or addition of substances occurs. The mixtures provided by the applicant fall under multiple tariff headings, primarily CTH 1102 and CTH 1106. Classification and GST Rate Determination: - Type I (80% Gram, 10% Maize, 10% Rice): Classified under CTH 11061090. - Type II (70% Gram, 10% Peas, 10% Maize, 10% Rice): Classified under CTH 11061090. - Type III (50% Gram, 20% Peas, 20% Maize, 10% Rice): Classified under CTH 11061090. - Type IV (70% Peas, 15% Maize, 15% Rice): Classified under CTH 11061090. - Type V (25% Gram, 25% Peas, 25% Maize, 25% Rice): Classified under CTH 11061090. - Type VI (95% Rice, 5% Urad): Classified under CTH 11029090. Applicable GST Rates: - With Registered Trade Mark: - Types I-V: 2.5% CGST + 2.5% SGST. - Type VI: 2.5% CGST + 2.5% SGST. - Without Registered Brand Name: - Types I-V: Nil CGST + Nil SGST. - Type VI: Nil CGST + Nil SGST. The ruling emphasizes that the classification and GST rate depend on whether the products are sold with or without a registered brand name. The Authority concluded that mixtures of flours without further processing or additives should be classified under Chapter 11, while the specific GST rate depends on branding and packaging.
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