Rate of Tax — Authority for Advance Ruling — Taxability on Bakery Products – The applicant engaged in the business of, inter alia, manufacturing, trading and exporting bakery products which includes flatbreads. The products are available in an ambient and frozen format with a shelf life ranging from a few days to one year depending on the customers’ requirements. The Applicant sought the ruling to determine the classification of (i) unleavened Flatbreads such as Plain Chapatti, Tortilla, Tortilla Wraps, Wraps, Roti Rolls, Roti, Chapatti, Paratha and Paratha Wraps (ii) Leavened Flatbreads such as Naan, Chalupa, Pita Bread, Kulcha, Leavened Flatbread, Unfolded Leavened Flatbread (iii) Wafer products such as Corn Chips, Corn Taco and Corn Taco Strips (iv) Pancakes, Pizza bread in terms of Rate and Exemption notifications.
Held that:- The Hon’ble Authority for Advance Ruling held that the unleavened Flatbreads products are covered under Entry No. 99 A of Schedule I and they would be liable to tax @ 5%. The product Leavened Flatbreads would be liable for taxes @ 18 %. However Pita Bread is covered by the expression ‘bread’ as mentioned under Entry No. 97 of Exemption Notifications. The products like Corn Chips, Corn Taco and Corn, Taco Strips would be treated as ‘wafer’ under Entry No. 16 of Schedule III of Rate Notifications, liable for taxes @ 18%. The product Pancakes would fall under Entry No. 16 of schedule III and liable for taxes @ 18%. The product Pizza Base would be treated as ‘Pizza Bread as mentioned under Entry No. 99 of Schedule / of Rate Notifications and it would be liable for taxes @ 18% .Signature International Foods India Private Limited [2018] 6 TAXLOK.COM 108 (AAR-MAHARASHTRA)