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Fortified Rice Kernels is appropriately classifiable under the sub-heading of Chapter 19 i.e. under Chapter sub-heading 19049000.

Appellate Authority for Advance Ruling —– Classification of Fortified Rice Kernels --The appellant a producer of the Institutional Foods in the State of Rajasthan, catering to the requirement of United Nation Food Aid Agency, World Food Program not only in India but also in the neighboring country as well. The appellant sought an application for Advance Ruling before the Rajasthan Authority for Advance Ruling for declaring the goods manufactured and sold by the appellant i.e., Fortified Rice Kernels (FRK) to be taxable under Chapter Heading 1006 as Rice and description of goods 10061090 other (IGST NIL/5%, CGST NIL/2.5%, SGST NIL/2.5%). The appellant submitted that the process to fortify rice was also comprehensively laid before the AAR. The AAR vide order dated 28.11.2019 held that Fortified Rice Kernels (FRK), manufactured and supplied by the applicant is classifiable under HSN 19049090 and attracts GST 18% (SGST 9% + CGST 9%). Aggrieved by the aforesaid Ruling above, the appellant has preferred the present appeal.
Held that:- The Hon’ble Appellate Authority for Advance Ruling held that the FRK manufactured by the appellant do not have essential character of natural Rice and does not merit classification under Chapter 10. It is appropriately classifiable under the sub-heading of Chapter 19 i.e. under Chapter sub-heading 19049000.—JVS Foods Pvt. Ltd., In Re… [2020] 23 TAXLOK.COM 018 (AAAR-Rajasthan)