Gujarat AAR Rules 5% GST applies on mix mukhwas

By: Admin
June 14, 2024
Categories: GST Recent News
4 Min Read

The Gujarat Authority of Advance Ruling (AAR) has decided in the case of Bhagat Dhanadal Corporation that a 5% GST applies to the seed mixes it manufactures and sells.

The company produces ‘Mix Mukhwas’ and ‘Roasted Til with Ajwain,’ with sesame seeds making up 60% of the ingredients in the former and 97% in the latter. The AAR noted that the processes of cleaning, adding salt and citric acid, roasting, and adding turmeric powder do not alter the classification since sesame seeds remain the dominant component.

The applicant highlighted that the mixes do not contain pan masala, sugar, chocolate, preservatives, or artificial flavoring substances, appealing to customers who prefer to consume sesame seeds as a seed mix. Based on these details, the AAR concluded that a 5% GST rate is applicable.