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2020 (4) TMI 634 - AAR - GSTExgibility to tax - rate of GST - Mango Pulp - whether classified under Chapter heading no. 08045040 of the Custom Tariff Act, 1975 or otherwise? - HELD THAT - The entry No. 51 of the Notification No. 02/2017-Central Tax (Rate), dated 28.06.2017 confined to only Mangoes in fresh form. Whereas, Mango Pulp is obtained from mango fresh after carrying out process of cutting, de-stoning, refining and packing. Thus, Mangoes in fresh and Mango Pulp are not same one, as both are separately classified under different Chapter sub-headings of the Customs Tariff Act, 1985 - Mango Pulp is specifically classified under Chapter sub-heading no. 0804 50 40 of Customs Tariff Act, 1975. However, the classification of item, Mango Pulp is not specified in GST Tariff. The Entry No.453 of Schedule-Ill of Notification No.01/2017Central Tax (Rate) is a residuary entry, cover goods which are not specified in Schedule I, II, IV, V or VI of the notification. This entry covers all Taxable Goods which are not specified in this notification. Mango Pulp would be squarely covered under the entry No.453 of Schedule III of the Notification No.01/2017- Central GST (Rate) dated 28.06.2017, which attracts rate of GST @18%.
Issues Involved:
1. Classification of Mango Pulp under the Customs Tariff Act, 1975. 2. Determination of the applicable GST rate for Mango Pulp. Issue-Wise Detailed Analysis: 1. Classification of Mango Pulp under the Customs Tariff Act, 1975: The applicant, a partnership firm engaged in the supply and marketing of agricultural produce, sought an advance ruling on the classification and GST rate applicable to Mango Pulp. The applicant classified Mango Pulp under Customs Tariff sub-heading 0804 50 40, which specifically mentions "Mango Pulp." The Customs Tariff Act, 1975, categorizes Mango Pulp under Chapter 8, which deals with edible fruits and nuts. The relevant tariff item for Mango Pulp is 0804 50 40, with a standard duty rate of 30% and a preferential area duty rate of 20%. The applicant argued that Mango Pulp should be classified under heading 0804, which includes mangoes, and falls under entry No. 51 of Notification No. 02/2017-Central Tax (Rate), making it exempt from GST. However, the Central Goods & Services Tax Commissionerate, Bhavnagar, pointed out that Mango Pulp, being processed and packed, does not fit the description of "fresh" mangoes and thus should not be classified under entry No. 51. 2. Determination of the applicable GST rate for Mango Pulp: The applicant contended that the GST rate for Mango Pulp should be determined based on its classification under the Customs Tariff Act. They referred to various notifications under the GST law, including Notification No. 02/2017-Central Tax (Rate), which exempts fresh mangoes under entry No. 51, and Notification No. 01/2017-Central Tax (Rate), which prescribes different GST rates for dried mangoes and other unspecified goods. The Central Goods & Services Tax Commissionerate, Bhavnagar, suggested that Mango Pulp might fall under different chapter headings, such as Chapter 8 (Edible fruit and nuts), Chapter 20 (Preparations of vegetables, fruit, nuts), or Chapter 22 (Beverages, spirits, and vinegar). They noted that Mango Pulp is processed and not in its fresh form, thus it could not be classified under the nil rate for fresh mangoes. The Authority for Advance Ruling (AAR) concluded that Mango Pulp, being specifically classified under sub-heading 0804 50 40, does not have a specified classification under the GST Tariff. Therefore, it falls under the residuary entry No. 453 of Schedule III of Notification No. 01/2017-Central Tax (Rate), which covers goods not specified in other schedules and attracts a GST rate of 18%. Ruling: The AAR ruled that Mango Pulp falls under entry No. 453 of Schedule III of Notification No. 01/2017-Central Tax (Rate) and attracts a GST rate of 18% (CGST: 9% and GGST: 9%).
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