5% GST applies on mix mukhwas, rules AAR

Mumbai, June 13, 2024

The Gujarat Authority of Advance Ruling (AAR) in the case of Bhagat Dhanadal Corporation has ruled that 5% GST is payable on seed mixes manufactured and sold by it. The products manufactured by it are ‘Mix Mukhwas’ and ‘Roasted Til with Ajwain’.

The AAR bench observed that both the products, mainly comprised of sesame seeds and constituted 60% of the ingredients in the first mix and 97% in the second product.The process of cleaning, adding salt and citric acid, roasting, and adding turmeric powder does not change the classification of the products as sesame seeds continue to be the dominant ingredient.

The applicant also pointed out that the mixes do not contain any element of pan masala, sugar, chocolate, preservatives, or any other artificial flavoring substances. These products are purchased by customers who desire to consume sesame seeds normally as a seed mix. Based on the facts, the AAR held that GST at 5% will apply.

[The Times of India]