The Kerala Authority of Advance Ruling (AAR) has given the advance ruling in respect of the foods in Kerala cuisine attracting different Goods and Service Tax (GST) rates based on the classification of “ready to eat” and “non ready to eat” foods.
The bench of Gayathri P.G. and Abdul Latheef K. has observed that Kerala Chicken Curry, Chettinadu Chicken Curry, Chicken Biryani, Mutton Curry, Mutton Roast, Beef Fry, Beef Roast etc. constitutes ‘ready to eat packaged food’ more specifically than ‘prepared or preserved meat.
The applicant is a company engaged in manufacture and export of value-added seafood items and ready to eat food products. The applicant claims that the items are prepared without the addition of preservatives and using RETORT technology from Japan which ensures a shelf life of 18 months. In the process, food and containers are made commercially sterile, precooked food items are packed in a special multilayer pouch, vacuum sealed and made bacteria free by retort processing. Such products are ready to eat once the pouch is opened and no further cooking is necessary.
The items are to be heated if required to serve hot. However, in respect of items at SI No 27, they have mentioned that the same is not ready to eat, but is only ready to cook. The applicant has provided the list of ingredients in each item, and has also provided the classification as they deem fit, and wants to know whether the classification is correct.
12% GST On Puli Inji, Sambar Curry, Avial Curry, Kadala Curry, Kappa Puzhukku and Fish Kappa Biryani
The AAR ruled that a- Puli Inji, Sambar Curry, Avial Curry, Kadala Curry, Kappa Puzhukku and Fish Kappa Biryani, the applicant is of the opinion that they fall under HSN Code 2005 99 00. The applicant has mentioned that the products are ready to eat and can be consumed by the customer directly after opening the pack. 12% GST On Puli Inji, Sambar Curry, Avial Curry, Kadala Curry, Kappa Puzhukku and Fish Kappa Biryani.
Thus, as per general explanatory note 1 to General Rules for the interpretation of Tariff, by virtue of the sign these items would fall under 20059900, as claimed by the applicant, only if they form subclass of ‘other vegetable and mixtures of vegetables’. It is evident that these items are not, as such, vegetables or mixtures of vegetables, but are food preparations made using vegetables and can be subject to direct use, or may be, after heating.
18% GST On Thenga Varutharachatu
The applicant has mentioned that the product is ready to eat and can be consumed by the customer directly after opening the pack. The applicant has classified the item under HSN 20081990. As per Customs Tariff, 20081990 is ‘other’ and a sub-class of – 200819, ie.,. ‘other including mixtures’ which, again, is a sub-class of – ‘Nuts, ground-nuts and other seeds, whether or not mixed together. Heading 2008 itself covers ‘Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, not elsewhere specified’.
The AAR found that this is a very general description and considering the fact that the same is a ready to eat item, the same can more specifically be classified under HSN 21069099, i.e., “food preparations not elsewhere specified or included, other”.
18% GST On Mutton Curry, Mutton Roast, Beef Fry and Beef Roast
The applicant has classified item No 8 to 12, which include Mutton Curry, Mutton Roast, BeefFry and Beef Roast, under 1602 50 00. They have mentioned that the products are ready to eat and can be consumed by the customer directly after opening the pack. Chapter 16 contains Preparations of meat, of fish…etc. 1602 50 00 is ‘Other prepared or preserved meat, meat offal, blood of bovine animals. Mutton Curry, Mutton Roast, Beef Fry and Beef Roast, when packed in ready to eat form, constitutes “ready to eat packaged food” more specifically than ‘prepared or preserved meat’.
The AAR opined that these items also deserve classification under HSN 21069099 and attracts 18% GST.
12% GST On Kerala Chicken Curry, Chettinadu Chicken Curry, Chicken Stew and Chicken Biryani
The next set of items constitute Kerala Chicken Curry, Chettinadu, Chicken Curry, Chicken Stew and Chicken Biryani, which the applicant claims to be classifiable under 16023200.
The applicant has mentioned that the products are ready to eat and can be consumed by the customer directly after opening the pack. The classification adopted by the applicant covers ‘Other prepared or preserved meat, meat offal, blood of fowls of the species ‘Gallus domesticus’. However, based on the ratio discussed in the previous paragraphs, we find Kerala Chicken Curry’, ‘Chettinadu Chicken Curry’, ‘Chicken Stew’ and ‘Chicken Biryani’, described in the literature provided by the applicant constitutes ‘ready to eat packaged food” more specifically than ‘prepared or preserved meat of fowl’.
Kerala Chicken Curry, Chettinadu Chicken Curry, Chicken Stew and Chicken Biryani items also deserve classification under HSN 21069099 and attract 12% GST.
12% GST On Curries and Fish Biriyani
The next three items are items of fish, two types of ‘curries’ and fish birivani, which the applicant proposes to classify under 1604 14 10. The description is the same as in paragraph 7.5 and 7.6 above, but in place of bovine animals and fowl, the content is prepared or preserved fish. The applicant has mentioned that the products are ready to eat and can be consumed by the customer directly after opening the pack. This sub-heading, viz., 16041410 specifically pertains to ‘Tunas’. Irrespective of the fact that the classification applicable to an item of tuna fish cannot be made applicable to all fish items, we find that the items involved are to be more specifically included under the category of ‘ready to eat packaged food’ rather than prepared or preserved fish’.
Thus, the AAR held that the right classification of these items is HSN 21069099 and attracts 12% GST.
18% Soya Coconut Fry, Masala Rice, Coconut Rice, Vegetable Pulavo and Tomato Rice
The next list consists of Soya Coconut Fry, Masala Rice, Coconut Rice, Vegetable Pulavo and Tomato Rice which they propose to classify under HSN 2106 90 99. The applicant has mentioned that the product is ready to eat and can be consumed by the customer directly after opening the pack. We find that this classification is correct. But there are different items with different rates which are classified under this HSN.
Out of these items falling under 2106 90 99, the AAR found that the listed items fall under the specific description “food preparations not elsewhere specified or included, other”.
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Ruling Details
Applicant Name: HIC-ABF SPECIAL FOODS PRIVATE LIMITED
Date: 21/06/2024
