Pizza topping is not pizza & should attract 18% GST: AAAR

The Haryana Appellate Authority of Advance Ruling in the matter of M/s Khera Trading Company ruled out that, “Pizza topping is not pizza; should attract 18% GST“.

The Appellant is inter alia engaged in the distribution of various dairy and non-dairy products and are registered with the jurisdictional GST authorities vide GSTIN 06AOEPK0998KlZK. The goods” Pizza Topping” is sold by the appellant under the brand ‘Goodrich’ is a proprietary food consisting of water, mozzarella cheese, vegetable oil and milk solids along with premixes of emulsifiers and stabilizers. It is ideal for use on pizza as a topping of cheese as it provides smooth lasting taste and stringiness to pizza.

The Question was that, “Whether the product ”pizza topping” is classifiable under Chapter Heading 0406 [S. No. 13 of Schedule-] of Notification No 1/2017-Integrated Tax (Rate} dated June 28, 2017, attracting IGST@ 5% I {SNo.89 of schedule-I of Notification No 01/2017 Central Tax (Rate} dt.28.067 attracting CGST 2.5%}/ {S.No. 89 of schedule-I of Notification No 35/ ST-2 attracting SGST@2. 5%}.”

The Coram found out that, “The applicant submitted that mozzarella cheese constitutes 14.5 percent of the total Pizza Topping and it forms the main ingredient to which other ingredients are added in small quantities Pizza Topping contains 15 percent of other milk products such as milk solids and skimmed milk powder (already provided at Para. 2 5 under Annexure )} Thus almost 30 percent {14.5% (mozzarella cheese) + 15% (milk solids and skimmed milk powder)} of product is comprised of cheese and other milk derivate. Thus, the essential character of Pizza Topping is provided by mozzarella cheese without which the Pizza Taping will not achieve its cheesy character. Notable that topping maintains its basic cheesy character even after addition of other ingredients. Accordingly, the pizza Topping is a type of cheese under Heading 0406 which covers cheese.”

The Appellate Authority Ruled out that, “The Ruling pronounced by the Authority for Advance Ruling, Haryana is thus correct and justified. Thus, the appeal filed by the appellant fails and the ruling of the Haryana Authority for Advance Ruling pronounced vide Order No. HAR/HAAR/R/2018-19/08 dated 30.08.2018 is upheld. The instant appeal stands disposed of accordingly.”

The Ruling was made by Dr. Amit Kumar Agrawal and Anil Kumar Jain.

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