Despite various instant flour mix products falling under different subheadings, fortunately the GST rate was the same at 5%.
On the other hand, the Advance Rulings Authority disagreed with the Applicant’s argument that a zero rate should apply, as its instant flour products were nothing short of other than flour of cereals and legumes mixed with spices, condiments and flavors.
In that case, a businessman who manufactured and sold various types of instant blended flours under the brand name “Talod” requested an advance ruling to determine the rates of the GST on his products as well as on the chutney powder, which was provided free with a few products – like the Bhajiya mix.
The instant blended flour he sold was used by customers to prepare a range of Indian dishes such as Khaman, Gota, Handwa, Dhokla, Idlis Rice, Rava Idlis, Dahiwada, Bhajiya, Upma and so on.
The ingredients differed from product to product. To illustrate the Dhokla mix, the flour was made from Udad dal, Chana dal, sugar, salt, sodium bicarbonate, citric acid, and Asafoedtida. The ingredients of the Rava-Idli blend were Gram dal, Udad dal, Rava, citric acid, salt, green chili, curry leaves and mustard seeds.
The advance rulings bench must deepen the classification and subtitles. While products such as Dhokla blend, Dahi wada blend, Bhajiya blend and Idli the mixture came under a subtitle; Rava-Idli mixture, Upma mixture and Muthiya mixture fell under another subheading. This despite the fact that all the products were mainly flour and spices.
On the plus side, there was no difference in the GST rate, which was the same at 5%. As for the powdered chutney, supplied free with some categories of flour mixtures, the RAA considered it to be a “mixed supply of goods” – this too had a 5% GST rate.