Uncooked Extruded Snack Pellets attract 5% GST: Gujarat HC quashes SCN raising 18% GST Demand against Food Products Manufacturer

The Gujarat High Court quashed a Show Cause Notice (SCN) that demanded 18% GST on uncooked extruded snack pellets, ruling that the applicable GST rate is 5%. This decision provides clarity on the tax classification of certain food products, ensuring that manufacturers are not overburdened by higher tax demands. The ruling is significant for the food industry, which has been grappling with ambiguities in tax classifications. By setting a lower GST rate, the court’s decision helps reduce the tax burden on manufacturers and promotes compliance with the correct tax rates.