Salted, Flavoured Potato Chips, Chivda, Sev, Hing Bhujiya Attracts 12% GST: Gujarat AAR
The Gujarat Authority for Advance Ruling (AAR) has observed that 12% GST is applicable on salted and flavouring potato chips, chivda, sev, and hing bhujiya.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the supply of food products namely salted and flavoured Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Hing Bhujiya, Sev Mamra...
The Gujarat Authority for Advance Ruling (AAR) has observed that 12% GST is applicable on salted and flavouring potato chips, chivda, sev, and hing bhujiya.
The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the supply of food products namely salted and flavoured Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Hing Bhujiya, Sev Mamra (Roasted Puffed Rice with Nylon Sev), Chana Daal (Fried split Bengal Gram), Gathiya and Khatta Mitha Chivda Mixture is pre-packaged and labelled.
An applicant is an unregistered person who intends to establish a manufacturing plant to produce salted and flavoured Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Hing Bhujiya, Sev Mamra (Roasted Puffed Rice with Nylon Sev), Gathiya, and Khatta Mitha Chivda Mixture.
The applicant sought an advance ruling in respect of the GST on salted and flavouring potato chips (chivda, sev, and hing bhujiya).
The AAR has held that supplies of food products in packages (plastic bags) of pre-determined weight have mandatory declarations that are required as per the Legal Metrology Act, 2009. Thus, the applicant's intended supply of food products is pre-packaged and labelled, whereas entry No. 101A of Notification No. 01/2017-Central Tax (Rate) dated June 26, 2017, is applicable to the goods that are not pre-packaged and labelled. Entry No. 101A of the notification before amendment w.e.f. July 18, 2022, is applicable with regard to the unbranded packages, which do not contain any brand name. However, as of July 7, 2022, the applicability of GST on the supply of goods bearing or containing a brand name was removed, and the applicability of GST on the supply of pre-packaged and labelled goods took its place. Because the applicant's food supply is pre-packaged and labelled, it is ineligible for the 5% GST tax rate.
Applicant’s Name: Prajapati Keval Dineshbhai
Date: 30.12.2022