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2020 (1) TMI 1006 - AAR - GSTClassification of goods - Fortified Rice Kernels (FRK) - whether fall under Chapter-10, Tariff item 1006 as Rice and description of goods 10061090 others (IGST Nil/ 5%, CGST Nil/2.5%, SGST Nil/2.5%)? - HELD THAT:- The applicant is a manufacturer and supplier of Fortified Rice Kernel (hereinafter called as FRK). The applicant supplies FRK to various units which are engaged in mixing of the FRK in normal rice which is further supplied to government for use in schemes such as Mid-Day Meal, Poshan Abhiyan, ICDS, PDS etc. - first, source rice for FRK is converted to flour form, then, the premix of vitamin-mineral is added to it. Post mix, the prepared material is passed through a machine which converts it back in to granule form of rice, which are known as Fortified Rice Kernel(FRK). The FRK is packed in a 25Kg bag to be further supplied to various millers/ suppliers with instruction “this product should be first mixed (blended) with traditional rice in ratio of 1:100 and then the mixed rice is cooked and consumed. In the present case, the normal rice has undergone specific mechanical and chemical processing resulting in to FRK. This preparation/ process of FRK is way beyond the scope mandated under Chapter 10 of GST Tariff (i.e. husked, milled, polished, glazed, parboiled or broken). Therefore, though FRK is shaped in form of rice by the mechanized process but it is not rice grain in terms of Chapter 10. Thus, FRK is classifiable under HSN 19049000 of GST Tariff as “other” and attracts GST @ 18%.
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