Chapter 19 - Preparations of cereals, flour, starch or milk; pastrycooks' products

Notes

1. This Chapter does not cover:

(a) except in the case of stuffed products of heading 1902, food prepiarations containing more than 20% by weight of sausage, meat, meat offal, blood, fish or crustaceans, molluscs or other aquatic invertebrates, or any of combination thereof (Chapter 16);
(b) biscuits or other articles made from flour or from starch, specially prepared for use in animal feeding (heading — 2309); or
(c) medicaments or other products of Chapter 30.

2. For the purposes of heading 1901:

(a) the term "groats" means cereal groats of Chapter 11;
(b) the terms "flour" and "meal" means:

(1) cereal flour and meal of Chapter 11, and
(2) flour, meal and powder of vegetable origin of any Chapter, other than flour, meal or powder of dried vegetables (heading 0712), of potatoes (heading 1105) or of dried leguminous vegetables (heading 1106).

3. Heading 1904 does not cover preparations containing more than 6% by weight of cocoa calculated on a totally defatted basis or completely coated with chocolate or other food preparations containing cocoa of heading 1806 (heading 1806).

4. For the purposes of heading 1904, the expression "otherwise prepared" means prepared or processed to an extent beyond that provided for in the headings of, or Notes to, Chapter 10 or 11.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
1901	Preparations suitable for infants or young children, put up for retail sale	18%	III	13
1902	Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous. whether or not prepared	5%	I	14
1903	Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms. (sabudana)	5%	I	98
1904	All goods i.e. Corn flakes, bulgar wheat, prepared foods obtained from cereal flakes [other than Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki]	5%	I	15
1905	Pizza bread	0%	Nil	99
2106	Khakhra, plain chapatti or roti	5%	I	99A<sup>2</sup>
1902	Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared	12%	II	32B<sup>1</sup>
1902	Seviyan (vermicelli)	5%	I	97
1905	Khakhra, plain chapatti or roti	0%	Nil	99A<sup>2</sup>
1905	All goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes [other than pizza bread, Waffles and wafers coated with chocolate or containing chocolate, papad, bread]	18%	III	16
1905	All goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes [other than pizza bread,khakhra,plain chapatti or roti,Waffles and wafers coated with chocolate or containing chocolate, papad, bread]	18%	III	16<sup>3</sup>
1905	Pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products [other than pizza bread, khakhra, plain chapatti or roti, bread, rusks, toasted bread and similar toasted products	18%	III	16<sup>4</sup>
1901 10	Lard stearin, lard oil, oleo stearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared	28%	IV	6<sup>2</sup>
1901 90	Lard stearin, lard oil, oleo stearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared	28%	IV	6<sup>2</sup>
1905 32	Waffles and wafers coated with chocolate or containing chocolate	28%	IV	7<sup>5</sup>
1901 20 00	Malt extract, food preparations of flout7, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of heading 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis not elsewhere specified or included [other than mixes and doughs for the preparation of bakers' wares of heading 1905]	18%	III	13<sup>1</sup>
1905 32 11	All goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes [other than pizza bread, Waffles and wafers coated with chocolate or containing chocolate, papad, bread]	18%	III	16
1905 40 00	Vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared.	5%	I	100
1905 90 40	All goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes [other than pizza bread, Waffles and wafers coated with chocolate or containing chocolate, papad, bread]	18%	III	16
1904 10 20	All goods i.e. Corn flakes, bulgar wheat, prepared foods obtained from cereal flakes [other than Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki]	18%	III	15
1901 20 00	Lard stearin, lard oil, oleo stearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared	28%	IV	6<sup>2</sup>
1901 20 00	Mixes and doughs for the preparation of bread, pastry and other baker's wares	5%	I	96
1905 32 11	All goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes [other than pizza bread,khakhra,plain chapatti or roti,Waffles and wafers coated with chocolate or containing chocolate, papad, bread]	18%	III	16<sup>3</sup>
1905 90 40	All goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes [other than pizza bread,khakhra,plain chapatti or roti,Waffles and wafers coated with chocolate or containing chocolate, papad, bread]	18%	III	16<sup>3</sup>
1904	Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki	0%	-	95
1905	Pappad, by whatever name it is known, except when served for consumption	0%	-	96
1905	Bread (branded or otherwise), except when served for consumption and pizza bread	0%	-	97

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. 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
Partial Exemption to Food Preparations meant for free distribution under Government Programs	Notification No. 39/2017-CT. (Rate), dated 18-10-2017
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

Maida papad

made of Wheat Flour, Added Sugar (10%), Vanaspathi (2%), Edible Oil and Soda Salt — not ready to eat- have to be fried - classifiable under [Tariff Item] '1905 05 40' and is exempted from GST vide Sl. No. 96 of Notification No. 2/2017-Central Tax (Rate). In Re: Subramani Sumathi 2019 (23) G.S.T.L. 126 (A.A.R. - GST).

Pizza with Chicken Toppings

The EN under the heading 1601 clarifies the scope of the entry as preparations consisting of meat or meat offal which have been chopped or minced, or blood, enclosed in guts, stomachs, bladders, skins or similar casings. These products may be pressed into characteristic shape of sausages and similar products, may be raw or cooked or semi cooked and may contain added fat, starch, condiments spices etc. In addition. they may contain relatively large pieces of meat or meat offal. The heading also includes certain food preparations called prepared meals based on sausages or similar products. Based on these Explanatory Notes, we conclude that pizzas with chicken toppings are not covered under CH 1601. We find that as per the explanatory notes to Chapter Heading 1905, provision for bread, pastry, cookies, biscuits and other baker's wares, pizza consisting of pizza base covered with ingredients such as tomato, oil, meat and anchovies is correctly classified under that entry. Therefore, pizzas cannot be brought under heading 160110 for the reason that pizza has a topping of chicken along with other ingredients. - Dodsal Corporation Pvt. Ltd. v Commissioner 2011 (263) ELT 719 (Tri.-Bang.)

The Unleavened Flatbreads products such as plain chapatti, Tortilla, Tortilla Wraps, roil, Roti rolls, Wraps, Paratha and Paratha wraps are covered under Entry No. 99A of Schedule I and they would be liable to tax 5% (2.5 % each for CGST and MGST and 5 % for IGST); The product Leavened Flatbreads such as Naan, Kulcha and Chalupa are not covered by the expression 'bread' as mentioned under Entry No. 97 of Exemption Notifications but they would be covered under residual entry 453 of Schedule III of GST Act and they would be liable for taxes @ 18% (9% CGST and 9% MGST). However, As there is no difference in the conventional bread and pita bread with respect to ingredients and manufacturing process, Pita Bread is covered by the expression 'bread' as mentioned under Entry No. 97 of Exemption Notifications; The products like Corn Chips, Corn Taco and Corn Taco Strips would be treated as 'wafer' under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes @ 18% (9% CGST and 9% MGST); Pancakes covered under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes @ 18% (9% CGST and 9% MGST); The product, Pizza Base would be treated as 'Pizza Bread' as mentioned under Entry No. 99 of Schedule of Rate Notifications and it would be liable for taxes @ 18% (9% CGST and 9% MGST)- In Re: Signature India Food International Pvt. Ltd. 2019 (20) G.S.T.L. 640 (AAR-GST).

"Seviyan (Vermicelli)" and "Ada"

are produced from maida or rice flour and are essentially used for giving richness to different varieties of Kheer/Payasams. The only difference is that Seviyan (Vermicelli) is prepared in the form of sticks and "Ada" is prepared in the form of thin pieces, making use of different dies. There is indeed nothing to differentiate "ada" from "vermicelli" except for the dies that are used in the manufacturing process which gives it a different shape. Ada is rightly classifiable under HSN 1902 of the 1st Schedule [Sl. No. 97-Seviyan (Vermicelli)] of Notification No. 01/2017-Central Tax (Rate), dated 28-6-2017 attracting 5% GST. In Re: Ramachandran Bror, 2018 (18) G.S.T.L. 367 (App. A.A.R. - GST).

Biscuits and Waffles

covered with chocolate classifiabk under Heading 19.05 irrespective of preparation 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).

Classic malabar parota' and 'whole wheat malabar parota'

The goods prepared from wheat flour, Edible vegetable oil, Milk solids, Sugar, Salt are in the nature of Parotta. 'Classic Malabar Parota' is unleavened, 'Whole Wheat Malabar Parota' is leavened with yeast. As per Entry 97 of Notification No. 2/2017-Central Tax/SRO. No. 361/2017, only specific commodity 'Bread branded or otherwise' covered under HSN 1905 are eligible for exemption and not parotta which is classifiable under Heading 2106 attracting GST @18% un Schedule III In Re: Modern Food Enterprise Pvt. Ltd., 2018 (18) G.S.T.L. 837 (AAR-GS7).

Gran bar with oats, sugar and other ingredients and having oats 53% of content and physically visible on sample is classifiable under CTH 1905 90 90- General Mills India Ltd. v Commissioner 2011 (268) ELT 390 (Tri- Mumbai).

Poha — Makai Poha

On a harmonious construction of these two, namely Headings 11.04 and 19.04, it would appeal' that if corn flakes are processed beyond the extent, which is provided in Chapter 11, so as to make them prepared foods, they would fall under Heading 19.04, but if they are processed only to the extent which is covered by Heading 11.04, namely till the stage of being steam-heated or rolled between heated rollers, they would fall only under Heading 11.04, because at that stage they are not breakfast food commonly known as "corn flakes" which is a cooked preparation ready for consumption. Mahavir Food Products v Commissioner 2007 (211) ELT 29 (Tri.-LB).

Khari and hard Butters

Khari and hard butters fall under heading 1905 and attract 18% GST. CB.1. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017