GST Rate on Pizza topping Classifiable under HSN 2106 90 99 & taxable at 18%: AAAR

Case Details: Appellate Authority for Advance Ruling Haryana Khera Trading Company, In re - [2022] 136 taxmann.com 196 (AAAR-Haryana)

Judiciary and Counsel Details

• • Dr. Amit Kumar Agrawal and Anil Kumar Jain, Member

Facts of the Case

The appellant was engaged in the distribution of various dairy and non-dairy products. It filed an application for advance ruling to determine classification and taxability of pizza toppings. The Authority for Advance Ruling held that pizza topping can’t be classified under heading 0406 as process cheese; instead it would be classifiable under heading 2106. It filed appeal against the order.

AAR Held

The Appellate Authority for Advance Ruling observed that product pizza topping contains 22% vegetable fat as compared to mozzarella cheese of 14.5%. The vegetable fat (which is major ingredient in impugned product) is not a prescribed ingredient for processed cheese. Therefore, the product pizza topping would not qualify to be classified under heading 0406 as cheese is not the major ingredient. The product pizza topping being edible preparation for human consumption, would merit classification under Chapter 21. As the product would not fall under specific entry, it would be classifiable under the residual entry ‘food preparations not elsewhere specified’ under tariff item 2106 90 99 and chargeable to GST at 18%.