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2021 (11) TMI 389 - AAR - GSTClassification of Supply of services - HSN Code - Rate of Tax - Pushti, a mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportion - applicability of Circular No.149/05/2021-GST dated 17.06.2021 to MSPC - MSPC is supplying food to CDPO for which the end user is anganwadi centers - entry No. 66 of Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 - HELD THAT - The applicant states that that they are supplying the goods to the CDPO and CDPO in turn supplies the same to Anganwadis. The applicant is purchasing and supplying only goods and not into supply of any service. Since Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 deals with supply of services which are exempted, the same cannot be applied to supply of goods as in the case of the applicant. Since the Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 is not applicable to the applicant's case, Circular No. 149/05/2021-GST, dated 17.06.2021 also is not applicable to the applicant's case. Circular No.149/ 05/ 2021-GST dated 17.06.2021, does not apply to MSPC as the applicant is into supply of goods.
Issues Involved:
1. Classification of Goods, HSN Code, and Rate of Tax on 'Pushti'. 2. Applicability of Circular No.149/05/2021-GST dated 17.06.2021 to MSPC. Issue-wise Detailed Analysis: 1. Classification of Goods, HSN Code, and Rate of Tax on 'Pushti': The applicant, a society registered under the Karnataka Societies Registration Act, 1960, supplies 'Pushti', a powdered mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportions, to the Child Development Project Office (CDPO) for distribution to anganwadi centers. The product 'Pushti' is exclusively supplied to CDPO and is not available in the open market. The applicant contends that 'Pushti' should be classified under HSN 1106 as per serial No. 78 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, which covers flour of dried leguminous vegetables, sago, roots, tubers, or products of Chapter 8. Circular No. 80/54/2018-GST dated 31.12.2018 clarifies that mixtures of flour of ground pulses and cereals (like 'Chattua' or 'Sattu') fall under HSN code 1106. Based on this, 'Pushti', being a powdered mixture of cereals and pulses, is classified under HSN 1106. If unbranded, it attracts Nil GST as per S. No. 78 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, and if branded and packed, it attracts 5% GST as per S. No. 59 of schedule I of notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017. 2. Applicability of Circular No.149/05/2021-GST dated 17.06.2021 to MSPC: The applicant also supplies other goods such as Sugar, Jaggery, Oil, Rice, Toor dal, Sambar masala, Salt, Gram dal, Green gram, and Ground nut to CDPO, which in turn supplies them to anganwadis. The applicant claims exemption on these supplies under Entry No. 66 of Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017, and Circular No. 149/05/2021-GST dated 17.06.2021. However, Notification No. 12/2017 Central Tax (Rate) pertains to exempted services, including catering services to educational institutions (like anganwadis). The definition of 'goods' (Section 2(52) of CGST Act 2017) and 'services' (Section 2(102) of CGST Act 2017) clarifies that the applicant's supplies are goods, not services. Therefore, the exemption under Notification No. 12/2017 Central Tax (Rate) and the Circular No. 149/05/2021-GST does not apply to the applicant's supply of goods. Ruling: i. 'Pushti', a powdered mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportions, is classified under HSN code 1106. If unbranded, it attracts Nil GST as per S. No. 78 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, and if branded and packed, it attracts 5% GST as per S. No. 59 of schedule I of notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017. ii. Circular No.149/ 05/ 2021-GST dated 17.06.2021 does not apply to MSPC as the applicant is into the supply of goods.
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