Supply Of Ready To Eat And Ready To Cook Food Products Attracts 18% GST: Karnataka AAR

The Karnataka Authority for Advance Ruling has ruled that 18% GST is applicable on the supply of ready-to-eat and ready-to-cook food products.

The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that all kinds of food mixes, including instant food mixes, soft drink concentrates, Sharbat, the betel nut product known as "Supari," sterilized or pasteurized millstone, ready-to-eat packaged food, and milk containing edible nuts with sugar or other ingredients, attract 18% GST.

The applicant is in the business of manufacturing, producing, and supplying frozen food in institutional packs to companies in the aviation industry, quick service restaurants, hotels, etc., across ready-to-eat (RTE), ready-to-cook (RTC), processed, and semi-processed categories.

The applicant has sought an advance ruling on the issue of the GST rate on ready-to-eat and ready-to-cook food products.

The applicant stated that most of the food items manufactured by SATS Food Solutions India Private Limited (SFSI) are classifiable either under HSN Code 2007 or under HSN Code 2106 90 99 and are subject to GST of 12% or 18% under Schedule II and Schedule III of Notification No.01/2017-Central Tax (Rate) dated June 28, 2017.

The AAR held that food products manufactured by the applicant are exigible for GST at 18% as per entry No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate), dated June 28, 2017.

Applicant’s Name: SATS Food Solutions India Private Limited

Date: 21.01.2023

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