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2021 (8) TMI 741 - AAR - GSTClassification of goods - rate of GST - different varieties of Flours - Gota Flour - Khaman Flour - Dalwada Flour - Dahiwada Flour - Dhokla Flour - Idli Flour - Dosa Flour - HELD THAT - Chapter Heading 2106 not confined to processed or semi processed food, cooked or semi cooked food, preserved food and ready to eat food. In fact, any product which is a food preparation and which is not elsewhere specified or included in the CTA, 1975, gets covered under HSN 2106. There are no merit to treat the subject goods as flour. As these products are not specifically mentioned under any specific Tariff item of HSN 2106, the products merit classification under the residual entry other at HSN 21069099. The 7 products of Mix Flour / Instant Mix Flour are appropriately classifiable under HSN 2106. Applicable rate of GST - HELD THAT - The various Instant Mix / Ready Mix Flour being supplied by the applicant are classifiable under HSN 2106 and in precise subheading 2106 90 - Food preparations not elsewhere specified or included falling under Chapter Heading 2106 are covered under the aforesaid Entry at Sr. No. 23 of Schedule- III of Notification No. 1/2017-Central Tax, as amended, attracting Goods and Services Tax @ 18%, though some of the specific products of Chapter Heading 2106 excluded from this entry are covered under different entries of Schedule-I or Schedule-II, attracting Goods and Services Tax @ 5% or 12%. None of the aforesaid 7 products of various Instant Mix / Ready Mix Flour being supplied by the applicant are the products which have been excluded from the entry at aforesaid Sr. No. 23 of Schedule III or which have been specifically included in any other entry of other Schedule of Notification No. 1/2017-Central Tax, as amended or in any of the entries of Notification No. 2/2017-Central Tax.
Issues Involved:
Classification and applicable GST rate for various types of flours (Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, and Dosa Flour) manufactured and supplied by the applicant. Detailed Analysis: 1. Classification of Products: The applicant argued that their products should be classified under HSN 1106, which pertains to "Flour, Meal, and Powder of the dried leguminous vegetables of heading 0713, of sago or of roots or tubers of heading 0714 or of the products of Chapter 8." They contended that their products, being flours mixed with spices, should fall under this category and attract a GST rate of 5% (2.5% CGST + 2.5% SGST). 2. Applicant's Justifications: The applicant emphasized that their products are not "ready to eat" but "ready to cook," requiring further preparation before consumption. They also referenced previous VAT regime determinations and legal precedents to support their classification under HSN 1106. 3. Revenue's Submission: The Revenue argued that the application should not be admitted as an enquiry was already initiated against the applicant. However, the Authority found that the enquiry was initiated after the application was filed, thus not barring the ruling. 4. Authority's Findings: The Authority clarified that classification under GST is based on HSN and the Customs Tariff, which includes specific rules and explanatory notes. The Authority noted that the applicant's products contain significant proportions of spices and other ingredients (ranging from 5% to 27%), which are not covered under Chapter Heading 1106. 5. Examination of Products: Upon examining the products, the Authority found that they are labeled as "Instant Mix" and contain various spices and ingredients. This composition led the Authority to conclude that these products do not fit under HSN 1106 but rather under HSN 2106, which covers "Food Preparations not elsewhere specified or included." 6. Relevant Circulars and Precedents: The Authority referenced CBIC Circular No. 80/54/2018-GST, which clarifies that flour with very small amounts of additives can be classified under HSN 1106. However, the Authority found that the applicant's products contain significant additives, distinguishing them from products like "Sattu" or "Chhatua." 7. Final Classification: The Authority ruled that the applicant's products are appropriately classifiable under HSN 2106, specifically under subheading 21069099, as they are food preparations requiring further processing before consumption. 8. Applicable GST Rate: As per Notification No. 1/2017-Central Tax (Rate), the products falling under HSN 2106 attract an 18% GST rate (9% CGST + 9% SGST). The Authority noted that none of the applicant's products are excluded from this entry or specifically included in any other entry attracting a different rate. Ruling: The products (Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, and Dosa Flour) are classifiable under HSN 2106 90 (Others) and attract an 18% GST rate (9% CGST + 9% SGST) as per Sl. No. 23 of Schedule-III to the Notification No. 01/2017-Central Tax (Rate) dated 28-6-2017.
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