Page 135 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SRI BHAGYALAKSHMI TRADING CORPORATION 381
an application for Advance Ruling under Section 97 of the CGST Act, 2017 and
Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of
Rs. 5,000-00 each under the CGST Act and the KGST Act.
2. The Applicant is a proprietary concern and is registered under the
Goods and Services [Tax] Act, 2017. The applicant has sought advance ruling in
respect of the following question :
(a) What is the applicable rate of tax (GST) on parched/puffed gram
(Hurigadale/Putani)?
3. The applicant furnishes some facts relevant to the stated act.
(a) The applicant states that he is in the business of supply of
parched/puffed gram which is commonly known as Hurigadale or
Putani in the State.
(b) The applicant states that Gram undergoes mere treatment and gets
converted to Fried Gram (normally known in Kannada as
Hurigadale or Putani. The Central Board of Indirect Taxes and the
Commissioner of Commercial Taxes have issued Circulars Bearing
No. 113/32/2019/GST, dated 11-10-2019 and Bearing No. 18/2019-
20, dated 14-10-2019 respectively and on mere reading of the para 3
of the Circulars, it is seen as under
“classification of leguminous vegetables when subject to mild heat
treatment (parching) : Doubts have been raised whether mild heat
treatment of leguminous vegetables (such as gram) would lead to
change in classification. It is clarified that Dried Leguminous Vege-
tables are classified under HS Code 0713. Thus it is clarified that
such leguminous vegetables which are subjected to mere heat
treatment for removing moisture, or for softening or puffing or re-
moving the skin, and not subjecting to any other processing or ad-
dition of any other ingredients such as salt and oil would be classi-
fied under HS Code 0713. Such goods if branded and packed in a
unit container would attract GST at the rate of 5% [S. No. 25 of Noti-
fication No. 1/2017-Central Tax (Rate), dated 28-6-2017]. In all other
cases, such goods would be exempted from GST [S. No. 45 of Noti-
fication No. 2/2017-Central Tax (Rate), dated 28-6-2017].
(c) The applicant stated that leguminous vegetables means such as
Gram, indicate that their trading commodity is included in HSN
Code 0713 and is exempted.
(d) The applicant states that there is confusion amongst the business
community about exemption on Fried Gram (commonly known as
Hurigadale or Putani) and in general these goods are sold under the
common name “Fried Gram” and is nothing but parched or puffed
gram. No additives such as salt and oil are used.
4. The applicant has filed a letter to this authority on 12-12-2019 stating
as follows :
(a) The Bengal Gram is grown and sold by the local agriculturist direct-
ly or through Agricultural Regulated Market Committees. The agri-
cultural commodity i.e. Bengal Gram is exempted from tax as it fits
into entry Sl. No. 45 under Chapter 07, Heading/sub-
heading/Tariff Item as “0713” and the description of the commodi-
ty is “Dried Leguminous Vegetables, shelled whether or not
GST LAW TIMES  21st May 2020  135