GST Rate of 18% applicable on ‘Ready to Eat’ popcorn

GST Rate of 18% applicable on ‘Ready to Eat’ popcorn The Authority of Advance Ruling (AAR) in the matter of M/s. Agro Tech Foods Limited ruled out the GST rate of 18% applicable on ‘Ready to Eat’ popcorn. The applicant M/s. Agro Tech Foods Limited is selling readymade popcorn. According to him ready to eat (RTE) popcorn is obtained by popping the maize corn by using a heating process which are subsequently coated with the palmolene oil, salt natural or artificial flavoring and spices. In his opinion, Heading 1904 includes Prepared foods obtained by swelling or roasting of cereals or cereal products are covered under Tariff Heading 1904. Thus, the popcorn being manufactured by the Applicant by using the process of swelling by heating would merit classification under Heading 1904. That the same classification has been confirmed by the Courts in India and overseas. The Question was that, "What would be the correct HSN classification and consequently rate of GST applicable on ‘Ready to Eat’ popcorn sold in retail packages?" The Authority Ruled out that, "HSN classification is ‘1904’ and the rate of tax is 9% SGST & CGST each." The Judgment was made by Sri B. Raghu Kiran and Sri S.V. Kasi Visweswara Rao. To Read Ruling Download PDF Given Below: