Fryums are classifiable under heading 1905 90 40 and taxable at 18% under GST

Fryums are classifiable under heading 1905 90 40 and taxable at 18% under GST

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Fryums are classifiable under heading 1905 90 40 and taxable at 18% under GST

An AAR was filed for the classification and HSN of Fryums.
Let is have a short overview of the
Alisha Gruh Udyog, [2022] 135 taxmann.com 206 (AAAR-GUJARAT)
The appellant was engaged in the business of manufacturing and supply of Fryums and different type of Namkeen/Farsan.
 It filed an application for advance ruling to determine taxability of Fryums manufactured by it.
The Authority for Advance Ruling held that product ‘fried Fryums’ manufactured and supplied by applicant would be classifiable under Tariff Item 2106 90 99 and taxable at 18%.
It filed appeal against the order.
The Appellate Authority for Advance Ruling observed that ingredients, uses and common parlance test would be decisive factors for classification and not name.
 The main ingredients of papad and impugned products were more or less similar. However, Sl. No. 96 of Notification No. 2/2017-Central Tax (Rate) would cover only papad products that shall be supplied in ready to cook condition and not in ready to eat condition.
The product Fryums shall be fried with masala and would not require further process which made them ready to eat.
 Therefore, such fryums would be classifiable under tariff item 1905 90 40 and would attract GST at 18%.

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