Chapter 18 - Cocoa and cocoa preparations

Notes

1. This Chapter does not cover the preparations of headings 0403, 1901, 1904, 1905, 2105, 2202, 2208, 3003 or 3004.

2. Heading 1806 includes sugar confectionery containing cocoa and, subject to Note 1 to this Chapter, other food preparations containing cocoa.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
1801	Cocoa beans whole or broken, raw or roasted	5%	I	93
1802	Cocoa shells, husks, skins and other cocoa waste	5%	I	94
1803	Cocoa paste whether or not de-fatted	5%	I	95
1804	Cocoa butter, fat and oil	5%	I	3<sup>1</sup>
1805	Cocoa powder, not containing added sugar or sweetening matter	28%	IV	4<sup>1</sup>
1806	Chocolates and other food preparations containing cocoa	28%	IV	5<sup>1</sup>
1804	Cocoa butter, fat and oil	18%	III	12A<sup>1</sup>
1805	Cocoa powder, not containing added sugar or sweetening matter	18%	III	12B<sup>1</sup>
1806	Chocolates and other food preparations containing cocoa	18%	III	12C<sup>1</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
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
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. 32017-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

Cocoa powder, unblended and unflavoured

not being known as Cocoa Powder in course of normal trade, is not liable to countervailing duty under Section 3 of Customs Tariff Act, 1975- Sesu Trading Corpn. v Collector- 1990 (45) ELT 64 (Tri.).

Biscuits and Waffles

covered with chocolate classifiable under Heading 19.05 irrespective ofP reP oration of chocolate by weight or value, Nestle (India) Ltd. v CCE 2000 (124) ELT 898 (Tri.).

Waffles and wafers

coated with chocolate classifiable under 1905 and preparation of hocolate irrelevant, Little Star Foods Pvt. Ltd. v CCE, Hyderabad 2006 (199) ELT 451 (Tribunal).

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 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 Parle Products P. Ltd. 1998 (104) ELT 461 (Tribunal). This judgment was affirmed by Hon'ble Supreme Court.