Wooden Ice Cream Sticks And Spoons Exigible To 12% GST: AAR

The Karnataka Authority of Advance Ruling (AAR) ruled that 12% GST is exigible on wooden ice cream sticks and wooden ice cream spoons.

The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that heading 4419 covers tableware and kitchenware of wood, and specifically, 4419 90 covers tableware and kitchenware of other wood, i.e., other than bamboo wood. Further HSN explanatory notes provide that heading 4419 covers spoons and crumb scoops in addition to other articles. The impugned products, the wooden spoon, and the wooden stick qualify to be covered under spoons and crumb scoops, respectively. Thus, the more specific classification of the products would be 4419 90 90 as tableware made of wood other than bamboo.

The applicant submitted the process of producing the semi-finished wooden spoons and wooden sticks that are imported by them. The semi-finished products are manufactured from wooden logs made of European white birch (Betula pendula) taken from Siberian forests, which are certified and covered under FSC document No.FC-COC-001640. In this process, the wooden logs are cut into the required size and boiled for 24 hours; later, they are fed into a peeling machine for sheets with a thickness below 2 mm, which are further fed into a cutting machine for die-cutting sticks or spoons to the specified size. In this process, no chemicals are added, and the wood is not compressed but directly peeled from logs and packed in a bulk poly bag, and shipped to the applicant.

The applicant sought an advance ruling seeking the classification of the wooden ice cream sticks and wooden ice cream spoons and the rate of GST applicable.

The AAR has ruled that wooden ice cream sticks and wooden ice cream spoons merit classification under HSN code 4419.90.90 and are thus subject to 12% GST.

Applicant’s Name: Ragu Packaging

Date: 13.04.2023

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