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TMI BlogGST @12% applicable on unbranded pre-packaged namkeens and salted/flavoured potato chipsX X X X Extracts X X X X X X X X Extracts X X X X ..... GST @12% applicable on unbranded pre-packaged namkeens and salted/flavoured potato chips - By: - CA Bimal Jain - Goods and Services Tax - GST - Dated:- 10-2-2023 - - The AAR, Gujarat in the matter of IN RE: M/S. PRAJAPATI KEVAL DINESHBHAI, - 2023 (1) TMI 496 - AUTHORITY FOR ADVANCE RULING, GUJARAT has held that, the supply of un-branded packaged namkeens and potato products such as chips ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /sev etc., according to pre-determined weights, will attract Goods and Services Tax ( GST ) at 12% as per Sl. No. 46 of Schedule-II of Notification No. 01/2017 Central Tax (Rate) dated June 28, 2017 ( the Goods Rate Notification ). Further held that, the supply of dry potato starch powder as a bye product has a specific entry and is classified under Sl. No. 18 of Schedule-II of the Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods Rate Notification , attracting GST rate of 12%. Facts: M/s Prajapati Keval Dineshbhai ( the Applicant ) is an un-registered person and intended to set-up a manufacturing unit of various unbranded food products like potato chips (various flavours), potato sev, potato chivda, gathiya and other snacks ( the Products ) and supply in packages of pre-determined weight. Further, the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant will be producing dry potato starch powder as a by-product of manufacture of potato based products. The Applicant submitted the manufacturing process of all the Products and contended that the Products fall under the category of Namkeens and should be classified under Sl. No. 101A of Schedule I of the Goods Rate Notification and Customs Tariff Heading ( CTH ) 2106 90 99 irrespe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive of their ingredients and shall be liable to be taxed at 5% GST. Further, the dry potato starch powder shall be classified under Sl. No. 18 of Schedule II of the Goods Rate Notification and under CTH 1108 13 00 and shall be liable to be taxed at 12% GST. The Applicant filed this application to the AAR seeking the classification and applicable GST rates on the Products. Issue: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the unbranded food Products manufactured by the Applicant is to be taxed at 5% GST or at 12% GST? Held: The AAR, Gujarat in IN RE: M/S. PRAJAPATI KEVAL DINESHBHAI, - 2023 (1) TMI 496 - AUTHORITY FOR ADVANCE RULING, GUJARAT held as under: Observed that, the word Namkeen is not defined under the Central Goods and Services Tax Act, 2017 ( the CGST Act ) and appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying the common parlance test, deciphered that Namkeen is a savoury snack that is ready to eat and is prepared by applying salt, masala, etc. Referred to the Judgment of Hon ble CESTAT, New Delhi in the matter of PEPSICO INDIA HOLDINGS PVT. LTD. VERSUS COMMR. OF C. EX. S.T., CHANDIGARH-I - 2015 (7) TMI 627 - CESTAT NEW DELHI wherein, it was observed that salted food preparations are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... called Namkeen . Observed that, the Applicant intends to supply pre-packaged and labelled food products. Further, w.e.f. July 18, 2022, SI. No. 101A of the Schedule-I of the Goods Rate Notification is applicable to the goods that are not pre-packaged and labelled, which was earlier applicable to un-branded packages which do not contained any brand name. Thus, the Applicant is not eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible to tax rate of 5% GST under SI. No. 101A of the Schedule-I of the Goods Rate Notification . Stated that, the Products of the Applicant are classifiable under CTH 2106 90 99, even though the Applicant is intending to supply its products unbranded, the Products will be pre-packaged and labelled as per the Legal Metrology Act, 2009 and therefore, the Products will be classified under Sl. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 46 of Schedule-II of the Goods Rate Notification and will attract GST at 12%. Further stated that, potato starch has a specific entry and is classified under CTH 1108 13 00 under Sl. No. 18 of Schedule-II of the Goods Rate Notification , attracting GST rate of 12%. Held that, the Products of the Applicant are classified under CTH 2106 90 99 and attract GST at 12%. Further held that, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by-product i.e. dry potato starch powder is classified under CTH 1108 13 00 and will attract GST at 12%. Relevant Provisions: Sl. No. 46 of Schedule II of the Goods Rate Notification : Schedule II 6% S. No. Chapter / Heading / Subheading / Tariff item Description of Goods 46. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2106 90 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form [other than roasted gram], pre-packaged and labelled Sl. No. 18 of the Goods Rate Notification: Schedule II 6% S. No. Chapter / Heading / Subheading / Tariff item Description of Goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds 18 1108 Starches; inulin (Author can be reached at [email protected] ) - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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