New Delhi: Ready-to-cook dosa, idli, porridge mix, etc., sold in powder form are taxable at 18 per cent, even though the rate of GST is 5 per cent if they are sold in the form of batter. Krishna Bhavan Foods and Sweets had approached the Tamil Nadu Bench of the Advance Ruling Authority (AAR) to deliver its verdict on the Goods and Services Tax (GST) rate applicable to 49 products such as bajra, jowar, ragi and multigrain porridge mix. a brand name.
AAR observed that the products sold by the unit are all food preparations in powder form.
“Dosai Mix and Idli Mix are sold as packaged mixes mixed with water/boiled water/curd to form a slurry and the product sold is a powder, not a batter. … All 49 The products for which the ruling is sought are classified under CTH 2106 and the applicable rate is 9 per cent CGST and 9 per cent SGST,” the AAR ruled.
AMRG & Associates Senior Partner Rajat Mohan said the AAR considered that ready-to-cook products like Dosai Mix, Idli Mix sold under the brand name are taxable at 18 per cent GST, even though the tax on the batter for the same. Is worthy. 5 percent.
“Such a legal interpretation by the Authority for Advance Judgment would lead to an inverted fee structure for the entire industry, requiring them to file tax refunds regularly,” Mohan said.
EY Tax Partner Abhishek Jain said such decisions may create an ambiguous situation in the tax system where the same product when sold in the form of flour attracts a higher tax rate than when sold as a batter. Is. Read also: TikTok owner ByteDance aims to IPO in Hong Kong by early 2022: Report
“The government should come up with suitable explanation/amendment in law to resolve such discrepant situations,” Jain said. Read also: Realme Book gets launch date: Expected price, specs and everything you need to know
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$('meta[name=description]').attr("content",$(this).children().find('.left-block').attr('data-summary'));
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$('meta[name=news_keywords]').attr("content",$(this).children().find('.left-block').attr('data-keyword'));
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loadshare(prevLoc);
}
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}
});
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url = $(next_selector).attr('href');
x=$(next_selector).attr('id');
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//loadDisqus(jQuery(this), disqus_identifier, disqus_url);
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});
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function disqusToggle() {
var id = $(this).attr("id");
$("#disqus_thread1" + id).toggle();
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var prev_content_height = $(content_selector).height();
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var layout = $(content_selector);
var st = 0;
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})(jQuery);
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