Home Case Index All Cases GST GST + AAR GST - 2021 (8) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 358 - AAR - GSTClassification of goods - rate of GST - HSN Code - Fruit bowl containing only cut fresh fruits (individually or mixture of different fruits) - Fruit bowl containing both cut fresh fruits and dry fruits and nuts - 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. HELD THAT:- Since the applicant is selling cut fruits in a sealed bowl under a brand name, the same 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. Tax rate on the fruit bowl containing both cut fresh fruits and dry fruits and nuts - HELD THAT:- The same is verified and since they are forming a single contract for supply of both goods and if the same are supplied for a single price, they would be covered under “mixed supply” - the mixed supply of fruits and dry fruits and nuts would be considered as the supply of dry fruits or nuts, whichever is taxable at a higher rate of tax and the tax rate applicable to that supply of dry fruit or nut would be the tax rate of the entire value of mixed supply of fruits and nuts. Supply of both cut fresh fruits and dry fruits and nuts separately and invoicing the same as separate line items - HELD THAT:- In the instant case, the applicant has informed that the customer is having the choice of choosing the dry fruits or nuts and it is not compulsory to choose any one. Hence the value of the fruit bowl is nothing but the sum of the separate supplies of fresh fruits and dry fruits and nuts. Hence the tax rate applicable is that which are applicable to the fruits, dry fruits and nuts separately as they are separate supplies - But in case, the applicant does not give the choice of choosing the dry fruits and nuts to be accompanied and sells the fresh fruits with dry fruits and nuts as a single package, then the same would amount to a mixed supply and is treated as the supply of dry fruits or nuts. Since the nature of dry fruits and nuts is not provided by the applicant, the tax rate applicable to the dry fruits or nuts would be the tax rate applicable to the entire package - supply would not amount to a composite supply as the two supplies are not naturally bundled. GST tax rate applicable to exclusive supply of fresh fruits - HELD THAT:- Regarding the dry fruits and nuts, since the applicant has not provided the details of which dry fruits and nuts are supplied, the same cannot be answered. Input tax credit - HELD THAT:- When the outward supply of goods is exempted, the taxable person is not eligible to claim the input tax credit to the extent relatable to the exempted supplies. But in the case of the applicant, since the goods are held to be taxable, the provision of section 17(2) is not applicable. Hence the person is eligible to claim input tax credit on the taxes paid on the inward supplies of taxable goods and services.
|