Choco in chikki to attract 18% GST The ruling in the case of Sirimiri Nutrition Food Products concerned the classification of different types of chikki under the GST regime.

The Karnataka AAR ruled that dry fruit chikki and spirulina chikki, which do not contain cocoa, are classified under Chapter Heading 17 as ‘sugar confectionery not containing cocoa’. This means that they are subject to a GST rate of 5%.

The AAR also ruled that chocolate-peanut chikki, which contains cocoa powder, is classified under Chapter 18 as ‘chocolate and other food preparations containing cocoa’. This means that it is subject to a GST rate of 18%.

The GST-Authority for Advance Rulings (GST-AAR), in the case Sirimiri Nutrition Food Products, a Bengaluru-based chikki manufacturer agreed that several of their chikkies, including the new varieties of dry fruit chikki and spirulina chikki will be subject to 5% GST

The AAR's ruling is based on the Harmonized System (HS) classification of goods. The HS is a global classification system that is used by customs authorities around the world.

The AAR's ruling is not binding on other taxpayers. However, it is likely to be followed by other taxpayers in similar cases.