18% GST is Applicable on Instant Mix Flour Containing Spices and Other Ingredients Being Classified Under HSN 2106 90 99 | AAAR

Case Details: Appellate Authority for Advance Ruling, Ahmedabad Kitchen Express Overseas Ltd, In re [2024] 163 taxmann.com 331 (AAAR-GUJARAT)

Judiciary and Counsel Details

• Samir Vakil & B.V. Siva Naga Kumari, Member
• B.K. Patel and Denish Mavani, CA’s for the Appellant.

Facts of the Case

The appellant was engaged in the business of manufacturing and selling various types of flours such as Khaman flour, Gota flour, Dalwada flour, Dahiwada flour, Dhokla flour, Idli flour and Dosa flour. It filed an application for advance ruling to determine the correct classification of these products. However, the Authority for Advance Ruling (AAR) classified these products under HSN 2106 90 99 and held that these products would be classified under HSN 2106 90 99. The appellant filed an appeal against the decision of AAR and contended that its products would be classified under Chapter 11 and taxable at 5% GST.

AAAR Held

The Appellate Authority for Advance Ruling noted that the products supplied by the appellant would be used to prepare various Indian dishes and would not be ready to eat. Moreover, the products would not be classifiable under HSN 1106 as they would contain spices and other ingredients apart from flours of leguminous vegetables, rice, and wheat. Therefore, the Appellate Authority for Advance Ruling held that these products would be classified under HSN 2106 90 99 and taxable at 18% under GST.