Confusion surfaces over GST rate on cheese balls
After ice cream, papad and paratha, cheese balls is another food item that triggered the dispute of goods and services tax (GST). The dispute has for now been settled by the appellate authority for advance ruling in Uttar Pradesh, Business Standard reported.
Savencia Fromage and Dairy Pvt Ltd, the petitioner argued for inclusion of cheese ball under cheese, which attracts 12 percent GST while GST authorities and the Authority for Advance Ruling (AAR) in Uttar Pradesh kept it under 18 percent tax rate because it does not come under specified food items.
After losing its case in AAR, the company approached a higher tribunal Appellate Authority for Advance Ruling (AAAR) in the state and appealed that cheese balls cannot be formed without cheese as cheese constitutes 55 percent of product’s volume so cheese balls should be included under cheese and attract 12 percent GST.
The AAAR agreed with the company’s argument and reversed the orer of 18 percent GST on cheese balls by AAR.
