Dear Sir,
We started new with the manufacturing of multigrain health mix powder.
Ingredients used for making the flour are cereals millets, pulses, and a lesser quantity of nuts. It is packed in mono carton box for retail distribution in our brand name in 500g packing.
What is GST rate?
What is the appropriate HSN code?
Does it fall under HSN code 21069099? I found a similar branded variety listed under this HSN code.
Your feedback and responses would be of great help for us.
Thanks in Advance.
Dear Sir,
Thanks for your valuable feedback.
Let me give more clarity on the product.
It is a flour of mixed ingredients. But, it is NOT ready to eat. It has to be cooked and then only it can be consumed.
Yes, this is packed in container unit for retail distribution with a brand name. Brand name yet to be registered.
However, we need an HS code for this basic flour/powder that can be within 5% rate. Kindly suggest.
11029000
11029090
Can we use any of the above 2 codes? If so, what will be the GST rate?
Thanks in Advance.
Dear Mr. Pulkit Sharma,
I have a confusion regarding flour being a ready to eat instant mix. Ideally, flour needs to be cooked into some form and is not ready to eat. Is multigrain flour not better classified in the 5% category?
Thanks in advance.
This is bit difficult to classify. But going with general provisions and language of act (including mix and composite supplies), one has to chose product with highest rate.
Basically what I feel is that your product is nothing but Flour of different grains.
Flour [1101, 1102, 1105, 1106] Aata, maida, besan, etc., put up in unit container and bearing a registered brand name., are taxed at 5%. You can chose chapter heading 1101 for this.
But there is no specific mention of mixed flour.
However there is a mention of mixed ready to eat foods.
2106 All kinds of food mixes including instant food mixes, soft drink concentrates, Sharbat, Betel nut product known as "Supari", Sterilized or pasteurized millstone, ready to eat packaged food and milk containing edible nuts with sugar or other ingredients, Diabetic foods; other than Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form.
These are taxed at 18%.
The code you specified is taxed at 28%.
But main essence is whether your product is chemically processed or not.
If it is just flour, ready to eat instant mix than you can go with 2106 and tax rate of 18%.
However in either case HSN chapter will be same 2106 but tax rate differs.
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