Mangoes, Misinterpretations & the Law: Gujarat HC serves a tangy verdict on GST!

The Gujarat High Court has ruled that "mango pulp" is taxable at 12% GST, not 5% as claimed by the supplier.

Legal Background

• Under the CGST Act, 2017, GST rates are notified under Notification No. 1/2017 (taxable goods) and 2/2017 (exempt goods).
• Fresh mangoes are exempt under Entry 51 of Notification 2/2017.
• Dried mangoes (sliced) are subject to 5% GST via Entry 30A of Schedule I (inserted after the 22nd GST Council meeting in 2017).
• All other mangoes, including pulp, attract 12% GST under Entry 16 of Schedule II (introduced in Notification 6/2022, following the 47th GST Council meeting).

The Dispute

• Harshad Mango Products argued that mango pulp is derived from sliced mangoes and should qualify for the 5% concessional rate under Entry 30A.
• The department disagreed, referring to CBIC Circular No. 179/11/2022-GST (dated 03.08.2022), which clarified that mango pulp falls under "mangoes other than sliced and dried" and is taxable at 12%.
• Aggrieved, the petitioner filed a writ under Article 226, challenging paragraph 4 of the Circular as ultra vires of the CGST Act, violative of Articles 14 and 19(1)(g) of the Constitution, and as introducing a third, retrospective category of mangoes not envisaged by law.

Court's Findings

• Referring to its earlier decision in Vimal Agro Products Pvt. Ltd. v. Union of India (2024), the Gujarat High Court held that "Mango pulp is neither fresh mango nor sliced-dried mango. Hence, Entry 30A is inapplicable," making it ineligible for the 5% rate.

Key Legal Observations

• The HSN Chapter 08.04 (Edible fruits and nuts) only refers to fresh or dried mangoes-not pulp.
• Entry 30A applies only to sliced and dried mangoes, not pulped forms.
• Circular 179/11/2022 and Notification 6/2022 are clarificatory in nature, not retrospective or arbitrary.
• Therefore, 12% GST is applicable on mango pulp from 01.07.2017 onwards, not 5% or 18%.