GST Advance Ruling TN/14/ARA/2026: Rice Bran Oil Classification Withdrawn
The Authority for Advance Ruling allowed the company to withdraw its request regarding the GST rate for rice bran oil.
- Ruling
- Advance Ruling No. 14/ARA/2026, dated 27.02.2026
- Dated
- 27 Feb 2026
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The company asked for the correct GST rate for refined rice bran oil.
- The company later requested to withdraw the application.
- The Authority closed the case without deciding on the tax rate.
- No legal precedent was set by this order.
In short
The company asked the Authority for Advance Ruling (AAR) to confirm the GST rate for its rice bran oil product. Before the authority could decide, the government issued a new notification clarifying tax rates for such products. The company then asked to withdraw its request, and the authority agreed.
What has changed
How it worked before
Businesses were uncertain about the correct GST classification and tax rate for refined rice bran oil products.
What has changed
Nothing changed because the authority did not issue a decision. The case was closed at the company's request, meaning the tax status of the product remains governed by existing government notifications rather than this specific ruling.
Who this affects
Manufacturers and distributors of edible oils who are unsure about the correct GST classification or tax rate for their products.
An example
Imagine a different edible oil company wants to know if their new product qualifies for a 5% GST rate. They might look at this ruling hoping for an answer. Because this ruling was withdrawn, it offers no help, and the company must rely on current government notifications or seek their own formal ruling.
What you should do
Do not rely on this order for your tax planning. An advance ruling only binds the company that asked and its specific tax office; since this case was withdrawn, it provides no guidance for other businesses.
If you do nothing
If you assume this withdrawn case sets a rule for your business, you risk applying the wrong tax rate. Tax officers may disagree with your interpretation, leading to demands for unpaid tax, interest, and penalties. Always verify your tax position against current government notifications.
The terms explained
- Advance Ruling
- A formal decision from tax authorities on how GST laws apply to a specific business transaction.
- HSN Code
- A system of numbers used to classify goods for tax purposes so that the correct rate is applied.
- Precedent
- A previous legal decision that serves as a guide or rule for future similar cases.
The ruling in detail
Authority for Advance Ruling
M/s. Kaleesuwari Refinery Private Limited
Advance Ruling No. 14/ARA/2026, dated 27.02.2026 · Tamil Nadu
Questions before the authority
- Whether the HSN code for rice bran oil is appropriate and in accordance with GST classification norms?
- Whether the applicable GST rate on the edible oil is 5% or is it 12%?
Facts
The applicant is a manufacturer of edible oils and intended to launch a new product named Deepam Lite, consisting of 100% refined rice bran oil. They sought an advance ruling regarding the correct HSN classification and the applicable GST rate for this product. Subsequently, the applicant requested to withdraw their application following a government clarification on tax rates.
Ruling
The Authority for Advance Ruling allowed the applicant's request to withdraw the application. Consequently, the application is disposed of as withdrawn without addressing the merits of the classification or tax rate questions.
Reasoning
The applicant requested to withdraw the application in light of a clarification issued by the Central Government via Notification No. 9/2025, Central Tax Rate, dated 17.09.2025, regarding the applicable tax rate for the product. The Authority considered this request and determined that as the applicant did not wish to pursue the matter further, the application should be treated as withdrawn. Therefore, the Authority did not proceed to examine the merits or detailed facts of the case.
Provisions relied on
- Section 98(4) of the CGST Act, 2017
- Section 98(4) of the TNGST Act, 2017
- Notification No. 9/2025, Central Tax Rate, dated 17.09.2025
For the practitioner
This order provides no substantive guidance on the classification or taxability of rice bran oil as the application was withdrawn. It serves only as a procedural record of the **withdrawal of the application** by the taxpayer. Practitioners should note that this ruling does not establish a precedent for the product in question.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/4-kaleesuwary_aar_order_1.pdf
Legibility of the scan, as read: high.
Prepared 12-10-2026.
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