‘pushti’ is a powdered Mixture of cereals, pulses and Sugar is exempt from Tax.

The Karnataka Authority for Advance Rulings (AAR) has ruled that “Pushti,” a powdered mixture of cereals, pulses, and sugar, is exempted from GST ( Goods and Services Tax). The Applicant, Raibag Taluka MSPC is registered as a “Society” under the Karnataka Societies Registration Act of 1960. They are involved in supplying supplementary products to Anganwadi centers through the Child Development Project Office (CDPO). The activities and operations of the Applicant are supervised by the CDPO of the respective Taluks. The Applicant purchased raw materials and ingredients from the open market, which are then cleaned, roasted, and powdered according to specified proportions. These ingredients are packaged as ‘Pushti’ products and supplied to the CDPO. The packaging of the Pushti product indicates “Free supply and not for sale,” although it is pre-packaged and unlabeled. According to Advance Ruling No. KAR ADRG 56 dated 29.10.2021, the product ‘Pushti’, a powdered mixture comprising ragi, rice, wheat, green gram, fried gram, moong dal, and soya, has been classified under HSN code 1106. The Applicant clarified that ‘Pushti’ does not bear a registered brand name and is supplied in packages weighing either 0.5 kg or 1 kg, also stating that it is “Free Supply and not for Sale,” in accordance with government guidelines. In addition to ‘Pushti’, the Applicant supplies other goods, including jaggery powder, oil, moong dal, groundnut, green gram, HDP plastic bags, parched gram, and salt to the CDPO. These items were also distributed to Anganwadi centers for the benefit of children, pregnant women, and lactating mothers. The Court observed that the product ‘Pushti’ is a powdered mixture of cereals, pulses, and sugar. The Applicant sought clarification on whether their product can be classified as “pre-packaged and labeled,” thereby subject to taxation under entry No. 59 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017, further amended by Notification No. 06/2022 Central Tax (Rate) dated 13.07.2022. The two member bench ruling consisting of Dr. M.P. Ravi Prasad and Kiran Reddy of the AAR ruled that ‘pushti,’ a powdered mixture of cereals, pulses, and sugar, is exempted from GST