Instant flour mixes for dosa, idli, khaman cannot be classified as sattu; to attract 18% GST


NEW DELHI, Instant mixes, together with idli, dosa and khaman flour, cannot be classified as chhatua or sattu and 18% GST ought to be levied on them, the Gujarat Appellate Authority for Advance Ruling (Gaaar) has dominated. Gujarat-based Kitchen Express Overseas Ltd had approached the AAAR towards the ruling by the GST advance authority, saying that its seven ‘immediate flour mixes‘ are usually not ‘prepared to eat’ however are required to bear sure cooking procedures and might be termed ‘prepared to prepare dinner’.
The firm sells flour mixes of gota, khaman, dalwada, dahi-wada, dhokla, idli and dosa in powder type and pleaded that it’s akin to Sattu and may attract Goods and Services Tax (GST) of 5 per cent.
The GAAAR rejected the appellant’s competition, saying that substances which go into the making of ‘immediate flour mixes” are not covered under the relevant GST rules as is the case with Sattu.
According to a CBIC circular, small amounts of ingredients, which are mixed to make Sattu, are specified in the GST rules to be eligible for a 5% tax rate.
“However, the stated clarification isn’t relevant within the current case as the merchandise being provided by the appellant include spices and different substances, which isn’t the case with the ‘chhatua or sattu’,” the Gaaar said.
The appellate authority also said that merely because the end consumer of the instant mix flour is required to follow certain food preparation processes before such products can be consumed is no grounds that 18 per cent GST should not be levied on it.
Abhishek Jain, indirect tax head & partner, KPMG, said classification disputes are among the most common areas of litigation under the GST.
“Despite the issuance of circulars, differing interpretations of the clarifications offered in these circulars have usually elevated the challenges,” Jain said.
Moore Singhi Executive Director Rajat Mohan said the Gujarat Appellate Authority for Advance Ruling (AAAR) affirmed the ruling of the Advance Ruling Authority (AAR), classifying various ‘Kitchen Express’ branded flours, including Khaman and Dhokla, under Chapter Heading (CH) 2106 90 99, thereby subjecting them to an 18% GST rate.
“The dedication was predicated on the merchandise’ important inclusion of components, such as sugar, salt, and spices, distinguishing them from less complicated flours classified beneath chapter 1101, 1102, or 1106, which attract a 5 per cent GST fee,” Mohan stated.
The AAAR elucidated that CH 2106 90 99 encompasses ‘prepared to prepare dinner’ meals preparations and dismissed the appellant’s analogy to ‘sattu,’ asserting that the substantial presence of components within the appellant’s merchandise justifies the upper tax fee, Mohan added.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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