Mouth freshener to be considered as ‘Food preparation not elsewhere specified or included’ under HSN 2106

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Mouth freshener to be considered as ‘Food preparation not elsewhere specified or included’ under HSN 2106

Mouth freshener to be considered as ‘Food preparation not elsewhere specified or included’ under HSN 2106

Prem Ghan Products, In re – [2019] 101 taxmann.com 97 (AAR – MADHYA PRADESH)
 
     
  Applicant is engaged in the manufacture, supply and trading of various types of mouth fresheners. Currently the product falls under chapter heading 2106 of HSN as ‘Miscellaneous Edible Preparation not elsewhere specified or included and attracts GST at 18% on supply of such product. While other major market players in this field dealing in similar products under brand names ‘Chutki’, ‘Pass Pass’, etc., are classified under chapter 20 of the HSN attracting GST at 12%. It filed an application for advance ruling, whether such products are liable to be tax at 18% or 12%?  
     
  Authority of advance ruling observed that the such products are being classified under chapter heading 2106 of erstwhile Central Excise Tariff Act 1985, and there is neither any change in ingredients nor any change in manufacturing process. It is held that Mouth Freshener shall be classified under chapter heading 2106 of the GST tariff as ‘Food preparation not elsewhere specified or included’ and would be chargeable to GST at 18%.

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