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Rate of GST on Fortified Rice Kernals, Goods and Services Tax - GST

Issue Id: - 116266
Dated: 4-5-2020
By:- OmPrakash jain
Rate of GST on Fortified Rice Kernals

  • Contents

What is the rate of tax on Fortified Rice Kernals (FRK) under which code together with reasons

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Showing Replies 1 to 8 of 8 Records

1 Dated: 7-5-2020

HSN 19049090 and attracts GST @ 18% (SGST 9 % + CGST 9 %) - Fortified Rice Kernals

2 Dated: 7-5-2020
By:- OmPrakash jain


What is the logic for classifying it under HSN 19049090 and not as a ricesince mixing of additives will not change the nature of Rice as per decided cases and classification guidelines by way of chapter notes..

3 Dated: 7-5-2020

Fortified Rice Kernel is classifiable under HSN 1904 90 00 of GST Tariff as “other” and attracts GST @ 18%. held by AAR, Rajasthan reported as 2020 (1) TMI-1006 in Re. JVS Foods Pvt. Ltd.decided on 28.11.19.

4 Dated: 8-5-2020

There is a discrepancy in the above decision of AAR. In para no.6 FRK has been classified under Chapter/Heading/Sub-heading No. (HSN) 1904 90 90 whereas in para no.5 below Table correct HSN has been mentioned as 1904 90 00. There is no sub-heading no. 1904 90 90 in Customs Tariff Act, 1975 (GST Tariff is based on Customs Tariff Act).

5 Dated: 8-5-2020
By:- OmPrakash jain



HSN code difference is only a typographical error. The AAR has adopted revenue oriented approach by taxing FRK @18%.

My submission is that why FRK should not be classified as RICE-Milled- “OTHER” UNDER HSN CODE 1006 30 90. If not then why?

CA Om Prakash Jain, Jaipur, 9414300730,

6 Dated: 8-5-2020

Just to clarify that in legal matters, logic do not either work or accepted in the court of Law.

7 Dated: 8-5-2020
By:- OmPrakash jain


Why FRK should not be classified as RICE-Milled- “OTHER” UNDER HSN CODE 1006 30 90. What type of Rice is covered under this entry.

CA Om Prakash Jain, Jaipur, 9414300730,

8 Dated: 9-5-2020

Dear Sh.Om Prkash Jain Ji,

Why FRK cannot be classified under Tariff Chapter/Heading/Sub-heading No.1006 30 90 ?

Chapter/Heading 1006 classifies plain rice. various kinds of rice and parts of rice/ layers of rice i.e. husk, bran, seed etc. All these are in natural form. All these are unprocessed forms.The process of milling separates husk (shelling) and outer bran(polishing) from the kernel. Nothing is added but only dissection/segregation is involved inasmuch as rice in the grain form is not edible. Sub-Heading is always an integral part of main Chapter/Heading. Here sub-heading no. 1006 30 90 (Other) is an integral part of main Chapter/Heading No.1006. Sub-heading no. cannot go beyond Chapter or Heading. Its scope is restricted up to Heading or Chapter. If you go through Chapter 10 of Central Excise Tariff Act as on 30.6.2017, you will find blank entry against the column, ‘Rate of duty’. This was blank because no manufacturing activity was involved because Central Excise duty was on ‘manufacture’. Now tax has been mentioned against this column because taxable event is ‘supply’. I mean to say all the above activities/processes involved are natural processes/unprocessed.

Fortified Rice Kernel

As its name indicates rice kernel (inner part of rice) is strengthened. Kernel is coated with micronutrients. The nutrients like iron, folic acid and other B-complex vitamins, vitamin A , zinc etc are driven into the body of rice grain (kernel) by the process of fortification. Thus fortification is a process of manufacture which increases the nutritional value of rice. In this way, the identity character of rice kernel is changed and it is a new product. By way of fortification everything is changed. Its shape is changed, its taste is changed, nutritional value is enhanced (changed), its end use is and function is changed.

So how a new product FRK can be classified under unprocessed/natural forms of rice (Paddy) ? The decision of AAR Rajasthan is legally correct and proper. It is not prejudiced.

I am all praise for you because do not sit still until or unless you are satisfied or concept is clear to you. So I would like to suggest you make further search on the issue in order to convince yourself.

What is rice ? What is legal and literal meaning of ‘Fortification’ What is Kernel ? What is rice kernel ?

Last but not the least I agree with M/s. Yagay And Sun, Sirs. He is very much right on the issue whatever he has expressed. His contribution in searching proper HSN cannot be brushed aside.

Hope you will like it.




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