GST Rate for Un-fried Fryums: Gujarat Advance Ruling GUJ/GAAR/R/2019/3
The Gujarat Authority for Advance Ruling decided that un-fried Fryums are not Papad and are subject to 18% GST.
- Ruling
- GUJ/GAAR/R/2019/03 dated 22.02.2019
- 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
- Sonal Product asked if un-fried Fryums qualify as tax-exempt Papad.
- The Authority ruled Fryums fall under Tariff Item 2106 90 99.
- These products attract an 18% GST rate, not the Papad exemption.
In short
The company asked the Gujarat Authority for Advance Ruling (GAAR) whether their un-fried snack products, known as Fryums, should be classified as Papad to claim a tax exemption. The authority examined whether these dough-based snacks, made from starch and flour, fit the common understanding of Papad.
What has changed
How it worked before
Many businesses assumed that various dough-based, un-fried snack pellets could be classified as Papad to benefit from the GST exemption applied to that category.
What has changed
The authority ruled that Fryums are not Papad and must be classified under the general category for food preparations (Tariff Item 2106 90 99). This means businesses must charge 18% GST on these products instead of treating them as exempt.
Who this affects
Manufacturers and sellers of un-fried snack pellets or Fryums.
An example
A snack manufacturer in Maharashtra produces un-fried rice-based pellets. They wonder if they can stop charging GST by labeling them as Papad. This ruling suggests their tax officer will likely classify them as taxable food preparations at 18% GST, regardless of the label used.
What you should do
If you sell similar products, do not assume they are exempt based on this ruling. An advance ruling only binds the business that requested it and their specific tax officer; it is not a law that applies to your business automatically.
If you do nothing
If you incorrectly classify your products as exempt, you risk a tax demand for unpaid GST plus interest and penalties. A tax officer may disagree with your classification during an audit, leading to costly disputes and potential litigation.
The terms explained
- Common parlance test
- A method used by tax authorities to classify goods based on how the general public and traders actually describe and use them in daily life.
- Omnibus heading
- A broad category in the tax tariff used to classify items that do not fit into more specific, named categories.
- Tariff Item
- A specific code used to identify and categorize goods for the purpose of determining the correct tax rate.
The ruling in detail
Authority for Advance Ruling
M/s. Sonal Product
GUJ/GAAR/R/2019/03 dated 22.02.2019 · Gujarat
Questions before the authority
- What is the correct classification of Papad and papad pipes of different shapes, sizes and varieties (commonly known as un-fried Fryums) manufactured by the applicant?
- What is the applicable rate of CGST payable on such Papad and papad pipes of different shapes, sizes and varieties (commonly known as un-fried Fryums)?
Facts
The applicant manufactures and sells various shapes of un-fried snack products commonly known as Fryums, made from a dough of maida, starch, rice powder, and other ingredients. These products require deep frying in edible oil before they can be consumed as food. The applicant sought a ruling on whether these products should be classified as Papad and exempted from tax.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification | 2106 90 99 Classified as food preparations not elsewhere specified |
| GST Rate | 18% As per Sl. No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate) |
The Authority ruled that the products are not classifiable as Papad and are instead classifiable under Tariff Item 2106 90 99. Consequently, the products are subject to an 18% GST rate (9% CGST + 9% GGST or 18% IGST).
Reasoning
The Authority applied the **common parlance test**, noting that while Papad is a distinct product, the applicant's own submissions acknowledge these items are known as Namkin. It relied on judicial precedents, including T.T.K. Health Care Ltd., which distinguished Fryums from cooked food and Papad. The Authority concluded that Heading 2106 is an **omnibus heading** for edible preparations not elsewhere specified. It determined that the products fall under the scope of Notification No. 1/2017-Central Tax (Rate) as amended.
Provisions relied on
- Customs Tariff Act, 1975
- Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017
- Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017
- Chapter Note 5 and 6 of Chapter 21
For the practitioner
This ruling clarifies that un-fried Fryums are **not eligible for the exemption** typically afforded to Papad. It settles the classification of such snack products under the residuary entry 2106 90 99, attracting an 18% GST rate. Practitioners should note that this decision relies on the specific manufacturing process and common commercial understanding of the product as Namkin rather than Papad.
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/guj_03-2019_dtd.22.02.19-sonal_product_19-2017.pdf
Legibility of the scan, as read: high.
Prepared 20-10-2026.
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