Gujarat High Court has held that chewing gum and bubble gum cannot be treated as edible sweets or confectionery items for Value Added Tax calculations. A division bench ruled that simply because a product yields a sweet juice or flavor while chewed, it does not acquire the status of an eatable item when the main substance is routinely spat out rather than consumed, as per TOI.
The verdict sets aside a previous decision by the state VAT tribunal that had granted tax relief to a local confectionery manufacturer. By upholding the state government’s assessment, the court confirmed that sales of chewing gum fall under the general residuary category, making them liable for 12.5% VAT instead of the lower 4% concessionary rate reserved for traditional sweets and sweetmeats.
