GST Rate of 18% applicable on Frozen Food: AAR

The Authority of Advance Ruling Karnataka(AAR Karnataka) in the matter of M/s. SATS Food Solutions India Private Limited has ruled that GST Rate of 18% applicable on Frozen Food.

The Questions and Ruling are:

1. Products are in frozen condition at -40 (minus 40) to -50 (minus 50) deg Celsius and are not fit for immediate human consumption.

2. Frozen products are supplied to businesses and not to retail customers.

3. Frozen products are supplied in bulk to businesses with minimum order quantities of 1 tonne or above and individual packaging sizes of 5 kgs and above.

4. No MRP is printed oi:: applicable on the products supplied to businesses.

5. Frozen products have long shelf life, ranging from 6 to 18 months and are to be stored at minimum -18 (minus 18) degree Celsius

6. The frozen products are not fit for immediate human consumption and need further processing such as thawing, final cooking (in case of processed and semi-processed), portioning, re-heating and re-packing with MRP. These activities are undertaken by the businesses or customers of SFSI to whom the frozen RTE/RTC/Processed/semi­processed products in bulk institutional packs are supplied. Minimum thawing time for the frozen products (under RTE/RTC/Processed/Semi Processed category) is 36 to 48 hours.

Ruling

The food products manufactured by the applicant are exigible to GST at 18% (CGST 9% and SGST 9%) as per entry No. 23 of Schedule III of Notification No.1/2017-Central Tax(Rate), dated 28.06.2017.

For Official Ruling Download PDF Given Below: