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III. GST Update:

1.  M/S. ID FRESH FOOD (INDIA) PVT. LTD., No.- KAR ADRG 38/2020, Dated.- May 22, 2020, Authority for Advance Rulings, Karnataka.

Facts of the case

1.    M/s ID FRESH FOOD (INDIA) PVT. LTD is a food products company involved in preparation & supply of wide range of ready to cook, fresh foods including idli & dosa batter, Parotas, Chapatis, curd, paneer, whole wheat parota and Malabar parota. The instant application pertains to classification of whole-wheat parota & Malabar parota and the question for which advance ruling is sought is as under:

Whether the preparation of Whole Wheat parota and Malabar parota be classified under Chapter heading 1905, attracting GST at the rate of 5%?

HELD:

The GST rate of 5% is applicable to the products subject to fulfillment of the conditions that (i) they should be classified under heading 1905 or 2106 and (ii) they must be either khakhra, plain chaptatti or roti. In the instant case the first condition of classification is fulfilled as the classification of the impugned products has been resolved as 2106. As for as the second condition is concerned the impugned products are described as “parota” and hence are neither khakhra, plain chaptatti nor roti. Further the products khakhra, plain chaptatti or roti are completely cooked preparations, do not require any processing for human consumption and hence are ready to eat foods preparations, whereas the impugned products are not only different from the said khakhra, plain chaptatti or roti but also are not like products in common parlance as well as in respect of the essential nature of the product.

The benefit of entry No.99A of Schedule I to the Notification No. 1/2017 -Central Tax (Rate) dated 28.06.2017, as amended vide Notification No.34/2017-Central Tax (Rate) dated 13.10.2017 denied. 

In the opinion of author, now parota , being  food preparations not elsewhere specified and included, but covered under HSN heading 2106, is covered under entry no. 23 of  Schedule 3 of  notification no 1/2017 as amended. Hence Taxable  @18%.

(Please click here for Order)

[ Contribution by CA. Vijay Gupta Ji ] 

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Golden Rules:

  "If you can't find the right words for certain situations, just give a smile.
Words may confuse, but a smile always convinces"
                                        

Thanks & Regards

CA. Sanjay Kumar Agarwal

Founder - Voice of CA  

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