GST ADVANCE RULING ON “MOUTH FRESHNERS”

AAR-30-ONE PAGER BRIEIFNG BY GSTCORNOR

The Applicant is engaged in the manufacture, supply and trading of

M/S PREM GHAN various types of mouth fresheners (after mixing Kharak, Khopra, Sugar,
PRODUCTS, INDORE Saung, Mishri, fennel etc or other natural flavoring substances). The
(APPLICANT) applicant procures various raw materials like betelnut, sugar etc and after
mixing the resultant product is sold in market under various product
names.

APPLICANT CONTENTION
 The applicant has classified the above impugned products under Chapter Heading 2106 “Miscellaneous
Edible Preparations not elsewhere specified or included” and discharging GST @18%.
 The applicant contended that there are other major market players in this field under the brand name
‘Chutki’, ‘Paas Paas’, ‘Mastana Mouth Freshner’ etc. and these particular products are being classified
under Chapter 20 of the HSN attracting GST @12%.

QUESTION OF ADVANCE RULING

Whether the goods manufactured (i.e. various types of mouth fresheners) by
the applicant and sold prepared by mixing various inputs/raw materials like
kharak, sugar, khopra, sounf, fennel, dates, mishri etc are liable to be
classified under
Chapter 21-2106:- GST @18% i.e. Miscellaneous Edible Preparations
Chapter 20:- GST @12% i.e. Preparations of Vegetable, Fruit or Nuts

MADHYA PRADESH AAR FINDING & CONCLUSION

The applicant has been clearing/selling/supplying the impugned product under 21016 since long i.e much
prior to roll out of GST with effect from 01.07.2017. We also take a note of the fact narrated by applicant
which says, “The classification of the assessee’s fininshed product under Chapter Heading 2106 is in
line with the classification under Cenral Excise Law and Cenral Excise Tariff”. This statement of
applicant is enough to conclude that there was no dispute regarding classification of the impugned product
during pre-GST regime.
In the given circumstances when there is no physical change in the ingredients/inputs/raw materials used
in production/manufacture of the impugned goods viz Mouth Freshener, we do not find any reason in
reviewing the established and settled classification of impugned goods.
AAR holds that the impugned goods shall be aptly classifiable under Chapter Head 2106 and would
attract prevailing rate of GST @18% as Food Preparations not elsewhere specified or included, in
terms of Notification No.01/2017-Central Tax (Rate)

JOIN OUR SUBCRIPTION PACKAGE AT RS.149/- PM

CONTACT: - 8989077616 OR GSTCORNOR@GMAIL.COM