Chapter 17 - Sugars and sugar confectionery

Notes

This Chapter does not cover:

sugar confectionery containing cocoa (heading 1806);
chemically pure sugars (other than sucrose, lactose, maltose, glucose and fructose) or other products of heading 2940; or
medicaments or of other products of Chapter 30.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
1701	Beet sugar, cane sugar, khandsari sugar	5%	I	91
1702	Palmyra sugar	5%	I	92
1703	Soya beans, whether or not broken other than of seed quality	28%	IV	1
1704	Palmyra sugar, mishri, batasha, bura	5%	I	92
1701	Beet sugar, cane sugar, [* * *]	5%	I	91<sup>1</sup>
1702	Palmyra sugar, mishri, batasha, bura	5%	I	92<sup>2</sup>
1702	Palmyra sugar, mishri, batasha, bura, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana, chikkis like puffed rice chikki, peanut chikki, sesame chikki, til chikki, til patti, tilrevdi, sugar makhana, groundnut sweets, gajak, khaja, khajuli,anarsa	5%	I	92<sup>3</sup>
1702	Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel [other than palmyra sugar and Palmyra jaggery]	5%	I	11
1703	Soya beans, whether or not broken other than of seed quality	28%	IV	1
1702	Palmyra sugar, mishri, batasha, bura, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana, chikkis like puffed rice chikki, peanut chikki, sesame chikki, til chikki, til patti, tilrevdi, sugar makhana, groundnut sweets, gajak, khaja, khajuli,anarsa	5%	I	92<sup>3</sup>
1704	Sugar boiled confectionery	12%	II	32AA<sup>2</sup>
1704	Sugar confectionery (excluding white chocolate and bubble/chewing gum) [other than bura, batasha]	5%	I	12
1704	Sugar confectionery other than rnishri, batasha. bura. sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana, chikkis like puffed rice chikki, peanut chikki, sesame chikki, tit chikki, til patti, til revdi, sugar makhana, groundnut sweets and gajak	18%	III	12
1704	Sugar confectionery other than mishri, batasha, bura, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana,chikkis like puffed rice chikki, peanut chikki, sesame chikki, til chikki, til patti, til revdi, sugar makhana, groundnut sweets, gajak and sugar boiled confectionery	18%	III	12<sup>2</sup>
1704	Chewing gum/bubble gum and white chocolate, not containing cocoa	28%	IV	2<sup>3</sup>
1701 91	All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes	18%	III	10<sup>5</sup>
1701 99	All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes	18%	III	10<sup>5</sup>
1701 91	All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes (other than those which attract 5% or nil GST)	12%	II	32A<sup>6</sup>
1701 99	All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes (other than those which attract 5% or nil GST)	12%	II	32A<sup>6</sup>
1701	Jaggery of all types including Cane Jaggery (gur) and Palmyra Jaggery	0%	-	94
1702	Jaggery of all types including Cane Jaggery (gur) and Palmyra Jaggery	0%	-	94
1701	Jaggery of all types including Cane Jaggery (gur). Palmyra Jaggery; Khandsari Sugar	0%	-	94<sup>4</sup>
1702	Jaggery of all types including Cane Jaggery (gur). Palmyra Jaggery; Khandsari Sugar	0%	-	94<sup>4</sup>

Other Exemptions

Description	Notification
Exemption from Registration - Small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.	Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.	Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund	Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSD	Notification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.	Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017

Departmental Clarifications / Case Law

Militry Malai Mithai NliWry Malai Mithai

cannot be terms as 'chewing Gum' (1704 10 00). or Jelly Confectionery (1704 90 10) or Boiled Sweet (1704 9020) or Toffee, caramel etc. Clearly the product is neither a gum nor boiled sweet nor toffee or caramel. The impugned product i.e. `Militry Malai Mithai` is made of Skimmed Milk Powder, Sugar, Whey Powder Emulsifiers flavours etc. mixed together in a semi-liquid form (neither semi-solid nor in the form of jelly) and packed in elongated pouches/sachets and ready for consumption. The ingredients, process and final shape of the impugned product takes itself out of the family of Sugar Confectionery in any form. The quest for appropriate classification rests finally at 2106 90 99 the residual entry, as the product itself does not find specific Place anywhere else in the Chapter 21. We thus conclude that the impugned product viz. Militry Malai Mithai would merit classification as Miscellaneous Edible Product under Chapter Heading 2106 90 99,SweaetMeet. In Re: Italian Edibles Pvt. Ltd, 2018 (19) G.S.T.L. 111 (AAR-GST)

Rasgulla and Peda —

not classifiable under CTH 1704.90 which is for `Sugar confectionery (including white chocolate), not containing cocoa`.- Composition is irrelevant, since Note 10 states that `products remain classified under 2108 irrespective of the nature of their ingredients. The scheme of the classification is to place all 'misthans' or 'mithai' under 2108. The terms of the note are 'include sweet meats commonly known as misthans or mithai or by any other name'. Thus, despite sugar being the pre-dominant ingredient, in view of the note the items can't go under sugar confectionary. Globe Confectionery v CCE, Allahabad 2005 (190) ELT 239 (Tri.-Del.) (This Judgment was maintained by Hon 'ble Supreme Court.)

Refined beet and Cane sugar:

Doubts have been raised regarding GST rate applicable on refined beet and cane sugar. Vide S. No. 91 of schedule-I of notification No. 1/201 7-Central Tax (Rate), dated 28-6-2017, 5% GST rate has been prescribed on all kinds of beet and cane sugar falling under heading 1701. Doubts seem to have arisen in view of S. No. 32A of the Schedule-II of notification No. 1/201 7-Central Tax (Rate), dated 28-6-2017. which prescribes 12% GST rate on All goods, falling under tariff items 1701 91 and I 1701 99 including refined sugar containing added flavouring or colouring matter, sugar cubes (other than thhose which attract 5% or Nil GST) .it is clarified that by virtue of specific exclusion in S. No. 32A, any sugar that falls under 5% category [at the said S. No. 91 of schedule-I of notification No. 1/201 7- Centr al Tax (Rate), dated 28-6-20171 gets excluded from the S. No. 32A of Schedule-IL As all kinds of beet and cane sugar falling under heading 1701 are covered by the said entry at S. No. 91 of Schedule-1 theseit is would get excluded from S. No. 32A of Schedule II, and thus would attract GST @ 5%. Accordingly, it is clasified beet and cane sugar, including refined beet and cane sugar, will fall under heading 1701 and attr 5% GST rate. Circular No. 52/26/2018-GST, dated 9-8-2018

Bubble Gum —

distinct from Chewing Gum and classifiablee under Heading 1704 90, Joyco India Pvt. Ltd. Commissioner 2002 (143) ELT 593 (Tri.-Del)

Ghadi Sakar (Mishri), Batasha (Pattasha), Illichidana (Chironjidana), Makhana

form of sugar having more than 90% sucrose and therefore correctly classified under Item No. 17019100 under the entry refined sugar. Circular No. 879/17/2008-CX. l (Order under Section 37B), dated 5-12-2008

Chewing Gum Base —

Intermediate product classifiable under Tariff Heading 1704.90 Warner Lambert India Ltd. v Commissioner 2004 (174) ELT 268 (Tri.-Bang.)

Dextrose

its being a chemically pure glucose, classifiable under Heading 17.02 of Central Excise Tariff and not under Heading 29.40. Commissioner v Tirupati Starch & Chemicals Ltd. 2005 (185) ELT 356 (Tri.-Del.)

Lozenges

Lozenges are classifiable under CTH 1704.90 — M.F. (D.R.) Letter F.No. 114/18/86- CX-3 dated 24-3-1986.

Sugar of milk

Sugar of milk, being Lactose is classifiable under CTH 1702.10- German Homoeopathic Distributors (P) Ltd. Commissioner — 2000 (119) ELT 448 (Tribunal).

Melody Chocolate Toffee and Baby Kismi Toffee

Melody Chocolate Toffee and Baby Kismi Toffee - The classification under the new tariff is dependent upon the description in the relevant Heading and Chapter notes and section notes. Chapter Note 2 of Chapter 18 read with Chapter Note No 1 of Chapter 17 of the Schedule to Central Excise Tariff Act, 1985 excludes any food preparation or confectionery containing cocoa from the scope of Tariff Heading 18.03 or Chapter 17. It is included in Heading 18.04, Collector v Park Products P. Ltd. 1998 (104) ELT 461 (Tribunal). This judgment was affirmed by Hon 'ble Supreme Court.

Peanut Chikki, Rajgira Chikki, Sesame Chikki, and shakkarpara-

1. As per HS explanatory notes, HS code 1704 covers most of the sugar preparations which are marketed in a solid or semi-solid form, generally suitable for immediate consumption and collectively referred to as sweetmeats, confectionery or candies.<br> 2. Prior to 15-11-2017, Peanut Chikki, Rajgira Chikki, Sesame Chikki and shakkarpara attracted 18% GST.<br> 3. With effect from 15-11-2017, Peanut Chikki, Rajgira Chikki, Sesame Chikki and shakkarpara attracts 5%<br> GST. [Notification No. 41/2017-Central Tax (Rate)]