AAAR upholds taxability of Fortified Rice Kernels at 18% GST

The AAAR Chhattisgarh upheld the taxability of Fortified Rice Kernels (FRK) at 18% GST under subheading 19049000. The ruling confirmed that FRK, made through milling and blending with vitamin-mineral premix, falls under Chapter 19 of the Customs Tariff Act, attracting 18% GST. This decision clarifies the classification and applicable tax rate for FRK, ensuring that manufacturers comply with the correct GST regulations. The ruling also acknowledges the GST Council’s recommendation to lower the GST rate for FRK supplied under specific government programs, highlighting the importance of accurate product classification.