18% GST Payable On Glaze Gels: AAR

The Maharashtra Authority of Advance Ruling (AAR) has held that 18% GST is payable on glaze gels.

The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that while sugar-baked confectionery is directly sold to ultimate end users for consumption, glaze gel is not consumed by end consumers, rather its product is used by cake manufacturers as a filling between sponge layers of cakes.

The applicant manufactures glaze gels and markets them to bakeries all across India. The glaze gel is processed in a manner similar to boiled sugar confectionery.

The applicant submitted that their product, namely glaze gels, also known by its various synonyms in trade, namely "Geli," "Coldgeli," "Glaze," etc., is made of various sugars, water, thickening agents, colors, and flavors. The ingredients may also be used for making "sugar-boiled confectionery" (SBC). The process of manufacturing the product "glaze gels" is also similar to the process of manufacturing "SBC"; hence, the company pleads to classify its product as "SBC" under Chapter Heading 1704, covered by Schedule II, Sr. No. 32AA, attracting 12% GST.

The applicant sought an advance ruling in respect of the GST applicable to the glaze gels.

The AAR held that the glaze gels cannot be considered a sugar-boiled confectionery, and therefore, Sr. No. 32 AA (Schedule II) of Notification No. 01/2017 Central Tax (Rate) dated June 28, 2017, is not applicable.

Applicant's Name: Healthy Life Foodtech Pvt. Ltd.

Date: 01.12.2022

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