12% GST applicable on Flavoured Milk: AAR [Read Order]

The Gujarat Authority of Advance Ruling (AAR) ruled that 12% GST applicable on flavoured milk.

The applicant, M/s. Vadilal Industries Ltd. (hereinafter referred to as “the applicant”) is a Company inter-alia engaged in the manufacture of goods like Ice Cream, ready to eat food and various other Milk products. Among other products, the applicant is producing flavoured milk, which is sold under the trade name of “Power Sip”. It is the applicant’s understanding, and also the applicant’s case in the present application, that such flavoured milk is a product meriting classification under Heading 0402, Sub Heading 04029990 of the GST Tariff.

The applicant sought the Advance Ruling on the issue in respect of the classification of “Flavored Milk” sold under trade name of Power Sip.

The coram of Sanjay Saxena and Mohit Aggarwal noted that ‘flavoured milk’ is classifiable under Tariff Item 2202 99 30 of the First Schedule to the Customs Tariff Act, 1975 as a “beverage containing milk”, so 12% GST is payable.

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