Rate of GST on popcorn

Last updated: 19 January 2023

Court :
Gujarat AAR

Brief :
The Gujarat Authority of Advance Ruling (AAR) ruled that product namely J.J.'s Popcorn of M/s Jay Jalaram Enterprises manufactured from raw corn/maize grains, by heating turn into puffed corns/popcorns. Further other ingredients like salt and turmeric powder along with oil added to make them palatable.

Citation :
IN RE JAY JALARAM ENTERPRISES

DATED: 11/03/2020
IN RE JAY JALARAM ENTERPRISES
GUJARAT AUTHORITY OF ADVANCED RULING (AAR)

QUESTION: GST rate on POPCORN

FACTS OF THE CASE

The applicant claimed that its products fell under 'Entry 50, tariff item 1005 of Schedule 1 of Notification 1/ 2017'. To translate it into GST classification terms: 'It was maize (corn) put up in a unit container and bearing a registered brand name'. Thus, the GST should be 5%, it stated. It submitted to the AAR that the Supreme Court, in another judgment, had held 'Atukulu', or parched rice, to be the same as 'Muramaralu', or puffed rice. The same logic should also extend to its product — which was nothing but puffed corn.

However, given the process of manufacture involved, which entailed heating of corn kernels, and later addition of oil and seasonings, the AAR held that the product “does not remain grain”.

JUDGMENT

The Gujarat Authority of Advance Ruling (AAR) ruled that product namely J.J.'s Popcorn of M/s Jay Jalaram Enterprises manufactured from raw corn/maize grains, by heating turn into puffed corns/popcorns. Further other ingredients like salt and turmeric powder along with oil added to make them palatable.

There is no separate heading is given for puffed popcorn but puffedpopcorn fits in the description of 'Prepared foods obtained by the roasting of cereal'. Hence the said product falls under entry at Sr. No. 15 of Schedule III of Notification No.1/2017 CENTRAL TAX (Rate) Dated 28-6-2017 and attracts 9% CGST and 9% SGST or 18% IGST.