Classification of goods— In the instant case, the applicant is engaged in manufacturing of Fortified Rice Kernels- Premix and classifying under Heading No. 1904 90 90 'Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, com flakes); cereals[other than maize(com)] in grain form or in the form of flaked or other worked grains (except flour, groats and meal), precooked or otherwise prepared, not elsewhere specified or included', wherein the applicable GST rate is 18%.

The applicant is seeking an advance ruling on the following issue:

Whether the applicant is eligible for concessional rate of tax of 5% under the exemption notification no. 39/2017 CT (R) with effect from 1 Oct 2021?

The designated Rice Millers have been requisitioned for supply of the fortified rice and the applicant has neither been supplying the said goods for free distribution to the economically weaker sections of the society under a programme duly approved by the Central Government or the State Government concerned, nor they are into final supply of said goods in terms of Notification No. 39/2017-C.T. (Rate) dated 18.10.2017.

Held that— The applicant is not eligible for concessional rate of tax of 5% under the exemption Notification No. 39/2017-C.T. (Rate) dated 18.10.2017