MUMBAI: In a decisive ruling by the Gujarat Authority of Advance Ruling (AAR), the case of Bhagat Dhanadal Corporation has been adjudicated, establishing a 5% GST rate on its manufactured seed mixes. The corporation’s products, specifically ‘Mix Mukhwas’ and ‘Roasted Til with Ajwain,’ are under scrutiny. The AAR bench meticulously noted that these items predominantly comprise sesame seeds, which constitute 60% of the former and a substantial 97% of the latter.
The core of the ruling hinges on the detailed composition and processing of these products. Despite undergoing processes such as cleaning, salting, citric acid addition, roasting, and turmeric powder inclusion, the classification remains unchanged as sesame seeds retain their status as the principal ingredient. The applicant has clarified that the seed mixes are devoid of pan masala, sugar, chocolate, preservatives, or artificial flavoring substances, thus appealing to consumers who prefer natural seed mixes.
In light of these considerations, the AAR concluded that a GST rate of 5% is applicable. This ruling underscores the authority’s commitment to maintaining tax consistency and clarity, reflecting a significant stance in the ongoing discourse of GST classifications. The decision resonates particularly with stakeholders monitoring the economic implications of GST on niche food products.