Supply of sealed fruit bowl containing cut fresh fruits without addition of any preservatives to be taxed at 5%

The applicant has sought advance ruling in respect of the following question:

1. Appropriate HSN Code applicable to supply of

i. Fruit bowl containing only cut fresh fruits (Individually or mixture of different fruits)

ii. Fruit bowl containing both cut fresh fruit and dry fruits and nuts.

2. GST tax rate applicable for each of the classified goods above?

3. Eligibility to input tax credit of GST paid on plant and machinery and expenses relating to the business in case the end product is classified as belonging to 0% tax rate under GST?

R U L I N G

1. (a)  (i) Supply of sealed fruit bowl containing only cut fresh fruits without addition of any preservatives or additives which are sold under brand name is covered under entry no.59 of Schedule I of Notification No. 1/2017 – Central Tax (Rate) dated 28.06.2017 vide HSN 1106 and is liable to tax @2.5% under CGST Act and 2.5% under the SGST Act, 2017.

(ii) The Fruit bowl containing both cut fresh fruits and dry fruits and nuts is taxable at rate applicable to the supply of dry fruits and nuts.

(b) As already discussed, the tax rate applicable on dry fruits and nuts cannot be provided as the exact nature of the dry fruit or nut is not provided.

2. The applicant is eligible for input tax credit on the tax paid on the inward supplies of inputs and input sevices involved in the supply which is taxable.