Halwa Purchased from Supplier, Packed and Marketed under a Brand Name is not Classifiable as “Namkeens”: AAR

The Kerala Authority for Advance Ruling (AAR) has ruled that halwa purchased from a supplier, packed at the applicant’s facility, and marketed under a brand name cannot be classified as “namkeens” under the GST framework. Despite falling under the same HSN Code 2106 90, the AAR clarified that such halwa is considered a sweetmeat and not a namkeen. This distinction is significant for GST classification and tax rates, as sweetmeats attract a different GST rate compared to namkeens. The ruling emphasizes the importance of accurate product classification for GST purposes to ensure compliance and correct tax application. This decision provides clarity for businesses involved in the production and marketing of similar products, helping them understand their tax obligations better. The AAR’s ruling is specific to the applicant but can be referenced in similar cases for guidance.