Mango Pulp GST Slashed from 18% to 12% — Court Corrects Tax Authority’s Error

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Case Name

M/s. Foods and Inns Ltd Vs Union of India

Court Name: High Court of Andhra Pradesh

Case No.: Writ Petition No. 17267 of 2022

Bench: The Honourable Sri Justice C. Praveen Kumar and The Honourable Sri Justice A.V. Ravindra Babu

Date of Decision: 14th September 2022

Key Takeaways

1. 18% GST on Mango Pulp was WRONG — The Appellate Authority for Advance Ruling had incorrectly classified mango pulp under Schedule III attracting 18% GST. The High Court corrected this.

2.🟢 Correct GST Rate is 12% — The Government of India’s own circular dated 03.08.2022 clarified that all forms of dried mangoes (other than sliced and dried mangoes), including mango pulp, falling under heading 0804, attract GST @ 12%.

3.🟡 Fresh Mangoes remain EXEMPT — Fresh mangoes under heading 0804 continue to be exempt from GST under S. No. 51 of Notification No. 2/2017-Central Tax (Rate), dated 28th June, 2017.

4.  Sliced, Dried Mangoes attract only 5% — Following the GST Council’s 22nd meeting recommendation, sliced and dried mangoes under heading 0804 were reduced to 5% GST.

5.  Government amended the notification to bring clarity — Entry at S. No. 16 of Schedule-II of Notification No. 1/2017-Central Tax (Rate), dated 28th June, 2017 was amended via Notification No. 6/2022-Central Tax (Rate), dated 13th July, 2022.

Issue

Was the GST Authority correct in charging GST @ 18% on ‘Mango Pulp’?

In simpler terms — the core question was: What is the correct GST rate for mango pulp — is it exempt, 12%, or 18%?

Facts

• The Petitioner is a manufacturer of mango pulp/puree who filed a writ petition under Article 226 of the Constitution of India before the Andhra Pradesh High Court.

• The petitioner wanted the court to direct the authorities to classify their goods under Chapter Heading 0804 50 40 and declare them exempt from GST under Entry 51 of Notification No. 2/2017-CT(Rate) dated 28.06.2017.

• Before approaching the High Court, the petitioner had applied to the Authority for Advance Ruling (AAR), Andhra Pradesh in AAR No. 16/AP/GST/2021. On 07.07.2021, the AAR ruled that mango pulp/puree falls under Entry No. 453 of Schedule-III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, attracting GST @ 18%.

• The petitioner then appealed to the Appellate Authority for Advance Ruling (AAAR). On 20.01.2022, the AAAR modified the AAR order and held that mango pulp/puree is classifiable under Tariff Item 0804 50 40 but still chargeable to GST @ 18% under Entry No. 453 of Schedule III in Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.

• The petitioner then came to the High Court. On 27.07.2022, the Court gave an interim direction — no coercive recovery steps for past transactions, but for future transactions, the petitioner was to pay GST @ 18% pending resolution.

• Meanwhile, the Government of India, Ministry of Finance, Department of Revenue (Tax Research Unit) issued a Circular dated 03.08.2022 which clarified the correct GST rates for various forms of mangoes.

Arguments

🧑‍💼 Petitioner’s Arguments:

• The petitioner argued that mango pulp should be classified under Chapter Heading 0804 50 40 and should be exempt from GST under Entry 51 of Notification No. 2/2017-CT(Rate) dated 28.06.2017 — the same entry that covers fresh mangoes.
• The petitioner relied on the Government of India Circular dated 03.08.2022 which clarified that mango pulp attracts only 12% GST, not 18%.

Respondents’ (Tax Authorities’) Arguments:

• The tax authorities (Respondents 2, 5 & 6 — Government Pleader for Commercial Taxes, and Respondents 3 & 4 — represented by standing counsel) had been charging GST @ 18% based on the AAR and AAAR orders classifying mango pulp under Entry No. 453 of Schedule-III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.

Key Legal Precedents & Notifications

This case didn’t rely on prior court judgments but heavily referenced statutory notifications and circulars. Here are all the key legal references:

Article 226 of the Constitution of India

Basis for filing the Writ Petition before the High Court

Notification No. 2/2017-CT(Rate) dated 28.06.2017, Entry 51

Petitioner’s claim — exempts fresh mangoes from GST

Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, Entry No. 453, Schedule-III

Basis for AAR/AAAR’s 18% GST ruling on mango pulp

Tariff Item 0804 50 40

Classification heading for mango pulp/puree

Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, S. No. 30A of Schedule I

Covers ‘Mangoes sliced, dried’ at 5% GST

S. No. 16 of Schedule-II of Notification No. 1/2017-Central Tax (Rate), dated 28th June, 2017

Amended to bring clarity on mango pulp taxation

Notification No. 6/2022-Central Tax (Rate), dated 13th July, 2022

Amendment notification that clarified mango pulp @ 12%

Government of India Circular dated 03.08.2022 (Tax Research Unit)

Key circular clarifying GST rates on all forms of mangoes

S. No. 51 of Notification No. 2/2017-Central Tax (Rate), dated 28th June, 2017

Fresh mangoes remain exempt from GST

Judgement

The Court’s Decision:

The High Court of Andhra Pradesh disposed of the writ petition with the following key findings:

1. The AAAR’s order imposing GST @ 18% on mango pulp was INCORRECT.

2. The Court relied on the Government of India Circular dated 03.08.2022, which clearly stated that:

• 🟢 Fresh mangoes → Exempt from GST
• 🟡 Mangoes, sliced and dried → 5% GST
• All other forms of dried mango, including Mango Pulp → 12% GST

3. The Court declared that the petitioner is liable to pay GST on Mango Pulp @ 12% — not 18% as previously ordered by the tax authorities.

4. The writ petition was disposed of with no order as to costs, meaning neither party had to pay the other’s legal costs.

5. All miscellaneous petitions pending in the writ petition were also closed.

In short: The petitioner didn’t get full relief (they wanted full exemption), but they did get a significant reduction — from 18% down to 12% GST on mango pulp. A partial but meaningful victory.

FAQs

Q1: Did the petitioner get what they originally asked for — full exemption from GST?

No, not fully. The petitioner wanted mango pulp to be treated like fresh mangoes and be completely exempt from GST. The Court didn’t grant that, but it did reduce the rate from 18% to 12%.

Q2: Why was 18% GST wrong for mango pulp?

Because the Government of India’s own Circular dated 03.08.2022 clarified that mango pulp, being a form of processed/dried mango under heading 0804, was always meant to attract only 12% GST — not 18%. The tax authorities had been applying the wrong rate.

Q3: What is the difference between fresh mangoes and mango pulp for GST purposes?

Fresh mangoes are completely exempt from GST. Mango pulp is a processed form and attracts 12% GST. Sliced and dried mangoes attract 5% GST.

Q4: What happens to the excess GST (18% - 12% = 6%) already paid by the petitioner for past transactions?

The judgment doesn’t explicitly address refunds for past overpayments. The petitioner may need to file a separate refund claim with the tax authorities for the excess GST paid.

Q5: What is the significance of the Government Circular dated 03.08.2022?

This circular was the turning point of the case. It was issued by the Ministry of Finance, Department of Revenue (Tax Research Unit) and clarified the GST rates for all forms of mangoes. The Court relied heavily on this circular to correct the AAAR’s erroneous 18% ruling.

Q6: Under which tariff heading is mango pulp classified?

Mango pulp/puree is classified under Tariff Item 0804 50 40 as confirmed by both the AAAR and the High Court.

Q7: Can this judgment be used as a precedent by other mango pulp manufacturers?

Yes, absolutely! This judgment, along with the Government Circular dated 03.08.2022, establishes that mango pulp manufacturers across India should be paying GST @ 12%, not 18%. Other manufacturers who have been charged 18% can rely on this judgment and the circular to seek corrections or refunds.

Heard Sri Mahesh Rai Chanda Nai, learned counsel representing Sri G. Arun Showri, learned counsel for the petitioner, Sri Y.N. Vivekananda, learned Government Pleader for Commercial Taxes appearing for respondents 2,5 & 6, and Sri Suresh Kumar Routhu, learned standing counsel appearing

for respondents 3 & 4. Perused the record.

2. The present writ petition came to be filed under Article

226 of the Constitution of India seeking issuance of a Writ of

Mandamus directing the respondents 5 & 6 to declare the goods

manufactured by the petitioner as classifiable under Chapter

Heading 0804 50 40 and exempt from GST in terms of entry 51

of Notification No.2/2017-CT(Rate) dated 28.06.2017, apart

from other reliefs.

3. As seen from the record, by an order dated 27.07.2022,

this Court, taking into consideration the submissions made

across the Bar, directed the respondents herein not to take any

coercive steps for recovery of GST @ 18% as contemplated by

them in respect of past transactions and insofar as future

transactions are concerned, in view of the dispute as to whether

‘mangoes’ mentioned in the notification include ‘mango pulp’,

directed that petitioner shall pay GST @ 18%.

4. The question that arises for consideration in the present

writ petition is: Whether the authorities were right in charging

GST, in respect of ‘Mango Pulp’, @ 18%?

5. Before going into the said aspect, it is to be noted here

that on an application made by the petitioner before the

Authority For Advance Ruling, Andhra Pradesh, in

AAR.No.16/AP/GST/2021, an order came to be passed on

07.07.2021 wherein it was held that the ‘Mango pulp/puree’

falls under the entry no.453 of Schedule-III of Notification

No.1/2017-Central Tax (Rate) dated 28.06.2017, attracting GST

@ 18%. Aggrieved by the same, petitioner herein preferred an

appeal before the Appellate Authority for Advance Ruling. An

order came to be passed by the appellate authority on

20.01.2022, which reads as under:

“We hereby modify the Order passed by the Authority for Advance

Ruling vide AAR.No.16/AP/GST/2021 dated 07.07.2021 and hold

that the ‘Mango Pulp/Puree’ is classifiable under Tariff Item 0804

50 40 and chargeable to GST @ 18% by virtue of entry No.453 of

Schedule III in Notification No.1/2017-Central Tax (Rate) dated

28.06.2017.”

6. Referring to the order passed by the Appellate Authority,

learned counsel for the petitioner would submit that pending

the writ petition, the Government of India, Ministry of Finance,

Department of Revenue (Tax Research Unit), issued a Circular

dated 03.08.2022 wherein while referring to Mangoes under

CTH 0804, stated as under:

“4. Mangoes under CTH 0804 including mango pulp, but other

than fresh mangoes and sliced, dried mangoes, attract GST at

12% rate:

4.1. Representations have been received seeking clarification

regarding the applicable GST rate on different forms of Mangoes

including Mango Pulp.

4.2. On the basis of the recommendation of the GST Council in

its 22 Meeting, the GST rate on Mangoes sliced, dried', falling

under heading 0804, was reduced from 12% to 5% [S. No. 30A of

Schedule I of notification No. 1/2017-Central Tax (Rate) dated

the 28th June, 2017]. However, the GST rate on all forms of dried

mangoes (other than sliced and dried mangoes), falling under

heading 0804, including mango pulp, was always meant to be at

the rate of 12%.

4.3. Accordingly, it is hereby clarified that mangoes, fresh

falling under heading 0804 are exempt; Mangoes, sliced and

dried, falling under 0804 are chargeable to a concessional rate

of 5%; while all other forms of dried mango, including Mango

pulp, attract GST at the rate of 12%. To bring absolute clarity,

the relevant entry at S. No. 16 of Schedule-II of notification

no.1/2017-Central Tax (Rate), dated 28th June, 2017, has been

amended vide notification No. 6/2022-Central Tax (Rate), dated

the 13th July, 2022.

4.4. Fresh mangoes, falling under heading 0804, continue to

remain exempt from GST (S.No. 51 of notification No. 2/2017-

Central Tax (Rate), dated the 28th June, 2017].”

7. From a reading of the above, it is very clear now that on

the basis of recommendation of GST Council in its 22nd meeting,

the GST rate on ‘Mangoes sliced, dried’ falling under heading

0804 was reduced from 12% to 5% while GST rate on all forms

of dried mangoes (other than sliced and dried mangoes) falling

under heading 0804, including mango pulp, was always meant

to be at the rate of 12%. Therefore, the petitioner is liable to

pay GST on Mango pulp @ 12%.

8. In view of the above, orders passed by the Appellate

Authority for Advance Ruling imposing GST in respect of ‘mango

pulp’ @ 18% is incorrect and it is made clear that the petitioner

is liable to pay GST in respect of Mango pulp @ 12%.

9. Accordingly, the Writ Petition is disposed of. There shall

be no order as to costs.

Miscellaneous petitions pending, if any, in this Writ

Petition shall stand closed.

JUSTICE C.PRAVEEN KUMAR

JUSTICE A.V.RAVINDRA BABU

14.09.2022