The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST on Chips, Sharkarai varatty, Roasted and Salted Cashew nuts and Namkeens.
The applicant, K. Swaminathan, M/s. Banana Chips & Halwa Merchant is engaged in business as a supplier of goods such as Banana Chips, Jackfruit Chips, Sharkaraivaratty and Halwa without brand name.
The applicant requested for advance ruling in respect of GST on Jackfruit Chips, Banana Chips (made out of both raw as well as ripe banana), Banana Chips (masala) sold without brand name, Sharkarai varatty and Halwa sold without brand name, roasted and salted or salted or roasted preparations such as of Ground nuts, Cashew nut and other seeds are namkeens and when sold without a brand name, and salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name.
The applicant contended that the Jackfruit Chips, Banana Chips, Sarkara Varatty and Halwa are sold without brand name. Jackfruit chips are made by frying the fruit in edible oil. Banana Chips are made by slicing raw / ripe bananas into thin round pieces and frying in edible oil. Salt and Turmeric are also applied. By adding masala, fried banana masala chips are prepared. Sarkara Varatty is made by frying thick pieces of banana slices in edible oil. Thereafter, they are mixed thoroughly in dense syrup of jaggery and then mixed in powder of dried ginger and cardamom. Halwa is made by cooking prepared maida flour in edible oil. After cooking, sugar and flavour are added and Halwa is ready for sale. Thus Jackfruit Chips, Banana Chips, Sharkara Varatty and Halwa are edible preparations and the first two are savoury and the last two-Sharkara Varatty and Halwa are Sweetmeat. Accordingly, the applicant is levying GST at the rate of 5% by classifying the commodities under Entry 101A of Schedule I of Central Tax (Rate) Notification No.1 of 2017.
The coram of Joint Commissioner of Central Tax, Shiva Prasad and Additional Commissioner of State Tax, Senil A.K.Rajan ruled that the Jackfruit Chips and Banana Chips, Sharkara Varatty, Roasted / salted / roasted and salted Cashew nuts, and salted and masala chips of Potato and Tapioca are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% (6% -CGST + 6% – SGST) as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
“Halwa is appropriately classifiable under Customs Tariff Heading 2106 90 99 and is liable to GST at the rate of 5% (2.5%-CGST + 2.5% – SGST) as per SI No. 101 of Schedule I of Notification No. 01/2017 — Central Tax (Rate) dated 28.06.2017,” the AAR said.
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