The Andhra Pradesh Appellate Authority of Advance Ruling (AAAR) consisting of Suresh Kishnani (Central Tax) and S.Ravi Shankar Narayan (State Tax) has ruled that 18% GST is chargeable on Mango Pulp/Puree'. The Appellant, a Public Limited Company, has been engaged in the business of supplying mango pulp/puree within India including merchant export. The Appellant...
The Andhra Pradesh Appellate Authority of Advance Ruling (AAAR) consisting of Suresh Kishnani (Central Tax) and S.Ravi Shankar Narayan (State Tax) has ruled that 18% GST is chargeable on Mango Pulp/Puree'.
The Appellant, a Public Limited Company, has been engaged in the business of supplying mango pulp/puree within India including merchant export.
The Appellant procures selected varieties of fresh mango fruits and transports them to the fruit processing plant. The fruits are inspected, graded, washed and sent to the controlled ripening chambers. The fully Ripened Mango Fruits are then washed, blanched, pulped, deseeded, centrifuged, homogenised, and thermally processed. The preparation process includes cutting, de-stoning, refining and packing.
The Appellant filed the application before Authority of Advance Ruling, seeking clarification on the issue that can the Mango Pulp/Puree be treated as fresh fruit and exemption be claimed on it. If not whether the mango pulp/puree falls under the heading 20079910 or 0804 or 2008′
Yet another issue raised was in respect of the rate of tax payable on outward supplies of Mango fruit Pulp/ Puree under the GST Act.
The AAR has ruled that Mango Pulp/Puree shall neither be treated as a fresh fruit nor be classified under headings 20079910 or 0804 or 2008.
The AAR further ruled that 'Mango pulp/puree', under the entry no. 453 of Schedule-Ill of Notification dated 28.06.2017 attracts the tax rate of 18%.
The appellant while challenging AAR's ruling, contended that the mango pulp is not merely fresh pulp or dried, but it is cooked in the sense the pulp is subject to preheating to the tune of 60 to 80 degrees and also sterilised before packing.
The Appellant submitted that Chapter Note 2 to Chapter 20 excludes fruit jellies, fruit pastes, sugar coated almonds etc. which are in the form of sugar confectionery. In the instant case, the mango pulp/puree is not sugar confectionery and thus, the exclusion clause is not applicable as sought. Since mango pulp and puree are one and the same product, it is classifiable under Chapter Heading 2007.
The AAR observed that Notification dated 13.10.2017 is silent on 'Mango Pulp'.
"As there is no specific description of "mango pulp/puree", under GST tariff notification, the entry no. 453 of Schedule -III of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 is applicable, which is a residuary entry covering goods which are not specified in Schedules I, II, IV, V, VI of the Notification, attracting the tax rate of 18%," the AAAR said.
Appellant's Name: M/s. Sri Manjunatha Fruit Canning Industries
Citation: Advance Ruling No. AAAR/AP/03(GST)/2022