5% GST On Sliced Fruits in 'Branded Box': Karnataka GST Authority

The Karnataka Authority for Advance Rulings has ruled that if fruits are cut and packed into a sealed bowl, with or without additional elements, they will attract 5% GST. The hearing concerned Juzi Fruits based in Bangalore. It was held that a branded and packaged bowl of fruit is a product. Usually, fruits and vegetables are amongst the categories of products excluded from GST.

Juzi fruits had sought a ruling based on the following questions: 

"1. Appropriate HSN Code applicable to supply of

i. Fruit bowl containing only cut fresh fruits (Individually or mixture of different fruits)

 ii. Fruit bowl containing both cut fresh fruit and dry fruits and nuts.

2. GST tax rate applicable for each of the classified goods above

3. Eligibility to input tax credit of GST paid on plant and machinery and expenses relating to the business in case the end product is classified as belonging to 0% tax rate under GST.

The Authority ruled that: 

Supply of sealed fruit bowl containing only cut fresh fruitswithout addition of ay preservtives or additives which are sold under brand name is covered under entry no. 59 of Schedule I Notification No. 1/2017- Central Tax (Rate) date 28.06.2017 Vide HSN 1106 and is liable to tax @2.5% under CGST Act and 2.5% under the SGST Act, 2017"

The ruling can be accessed here