The pre-mix popcorn maize(corn kernels) packed with edible oil and salt supplied by the applicant is classified under CTH 20081990, the applicable rate of tax is 12%.
Classification of goods— The Applicant has sought Advance Ruling on the following question:
i. What would be the accurate HSN code and consequently, the rate off GST applicable on pre-mix popcorn maize packed with edible oil and salt? Whether the same can be classified under HSN Heading2008 and whether the same shall be chargeable to tax at the rate of 12%.
ii. If so, whether the said rate of Goods and Services Tax rate of 12% is applicable retrospectively with effect from 1st July 2017.
In the instant case, the product are corn kernels or seeds (edible parts of the maize plant) which are cleaned, destonned to which oil, salt and various spice and flavour mixes are added before being packed together. It is seen from the packaging that they are ‘specifically packed for popcorn vending machines. Not for retail sale’. The Ingredients mentioned on the packaging are: Corn, RBD Plamolien oil, Iodised Salt and some of them have added flavours such as Butter Flavour, Turmeric Powder, Natural Carotenoids, natural food colours etc.
As per explanatory notes, as long as the essential nature is retained, the edible parts of plants are classifiable under CTH 2008. In this case, the products are seeds. Therefore, corn kernels /seeds with added oils and spices are classifiable under CTH 20081990.
On the applicable rate of tax, the product in hand is classified under CTH 20081990 and is liable to 12% GST.