5% GST Payable on Mix Mukhwas and Roasted Til & Ajwain: AAR Ruling

Case Details:

• Applicant's Name: M/s Bhagat Dhanadal Corporation
• Advance Ruling No.: GUJ/GAAR/RI/2024/13
• Application No.: Advance Ruling/SC ST& CGST 2023 AR/32

Facts:

M/s Bhagat Dhanadal Corporation, a producer of seed mixes, applied for an advance ruling regarding the classification and taxability of two products—Mix Mukhwas and Roasted Til & Ajwain. These products are primarily composed of roasted sesame seeds, with Mix Mukhwas containing 60% sesame seeds and 27% Dhanadal, while Roasted Til & Ajwain has 97% sesame seeds. Both products are free from artificial flavors, preservatives, or additives, and are consumed as healthy seed mixes. The applicant sought clarification on whether these products fall under HSN code 12074090 and if they qualify for a 5% GST rate under entry no. 70 of Schedule I, Notification No. 1/2017-Central Tax (Rate).

Held:

The Authority for Advance Ruling (AAR) upheld the classification of Mix Mukhwas and Roasted Til & Ajwain under HSN code 12074090 of the Customs Tariff Act, 1975. The AAR ruled that these products are covered by entry no. 70 of Schedule I of Notification No. 1/2017-CT(R) dated June 28, 2017, making them subject to a tax rate of 2.5% CGST, 2.5% SGST, or 5% IGST.

Conclusion:

The AAR's ruling confirms that Mix Mukhwas and Roasted Til & Ajwain are taxed at a 5% GST rate, clarifying the tax liability for seed mix products that do not contain any artificial additives or preservatives, thus promoting transparency in GST classification for health-oriented consumable goods.

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