GST Rate of 18% applicable on Chikkis containing Cocoa: AAR

The Authority of Advance Ruling(AAR Karnataka) in the matter of M/ s. SIRIMIRI NUTRITION FOOD PRODUCTS has discussed GST Rate of different types of Chikkis.

The applicant is engaged in the manufacture of nutrition food products. They intend to manufacture a new variety of chikkies i.e. Sesame Chikkies, Chocolate Peanut Chikkies, Amaranth Chikkies, Crushed Peanut Chikkies, Spirulina Chikkies, Dry Fruit Chikkies. Thus the applicant filed the instant application seeking an advance ruling on the classification of the said products and the applicable GST thereon.

The Questions and Ruling are as follows:

a. Classification of Chikkies under respective HSN along with applicable tax rates on those chikkies

b. Under which head classification needs to be done for the following types of chikkies.

Types of chikkies and ingredients:

1. Sesame chikkies: Sesame Seeds, Jaggery, Butter and Rck Salt
2. Chocolate Peanut Chikkies : Peanuts, Jaggery, Dried Coconut, Butter, Cocoa Powder, Rock Salt, Natural Chocolate Flavour
3. Amaranth Chikkies: Amaranth Seeds, Jaggery, Butter, Rock Salt.
4. Crushed Peanut Chikkies: Peanuts, Jaggery, Butter, Rock Salt
5. Spirulina Chikkies : Peanuts, Jaggery, Butter, Spirulina Powder, Rock Salt, Natural Cardamom Flavour
6. Dry Fruit Chikkies : Premium Almonds, Jaggery, Peanut, Sesame Seeds, Green Pistachios, Cashew Nuts, Butter, Rock Salt and other dry fruits

c. Will the above chikkies will be treated chikkies as per GST classification.

d. Whether dry fruit chikkies will be covered under HSN 1702 or 1704?

RULING

1. Chikkies covered under sugar confectionery are classifiable under chapter heading 1704 and are taxable to GST @5%, in terms of entry number 92 of Schedule-I to Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, as amended.

2. (a) The products “Sesame Chikkies, Amaranth Chikkies, Crushed Peanut Chikkies, Spirulina Chikkies and Dry Fruit Chikkies” are covered under Sugar Confectionery not containing Cocoa and accordingly classifiable under chapter heading 1704 and are taxable to GST @5%, in terms of entry number 92 of Schedule-I to Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, as amended.

(b) The Product “Chocolate Peanut Chikkies” is covered under Sugar Confectionery containing cocoa and accordingly classifiable under chapter heading 1806 90 20 is exigible to GST@ 18%, in terms of entry number 12C of the Schedule – III to the Notification No. 1/2017-Central Tax (Rate) dated 18.06.2017, as amended by the Notification 41/2017- Central Tax (Rate) dated 14 .11.201 7.

3. The above Chikkies are to be treated as “Sugar confectionery not containing cocoa” and “Sugar confectionery containing cocoa” respectively as discussed above.

4. The Dry Fruit Chikkies are to be treated as Sugar Confectionery not containing cocoa and accordingly are classifiable under chapter heading 1704.

For Official Ruling Download PDF Given Below: