Britannia Winkin’ Cow Thick Shake’ classifiable as Flavoured Milk attracting 12% GST: AAR [Read Order]

The Tamil Nadu Authority for Advance Ruling (AAR) ruled that UHT Sterilized Flavoured Milk marketed under the brand name ‘Britannia Winkin’ Cow Thick Shake’ by the applicant is classifiable as “flavoured milk” and therefore, attracts 12% GST.

The applicant, M/s. Britannia Industries Limited is a leading supplier of dairy products, biscuits, bread, etc. which are available across the country in close to 5 million retail outlets.

The Applicant has stated that they manufacture or procure and supply UHT Sterilized Flavoured Milk and market it under the brand name ‘Britannia Winkin’ Cow Thick Shake’. The product is made in multiple flavours and supplied in Tetra Packs. The UHT Sterilized Flavoured Milk comprises mainly of milk about 80 – 90%and sugar about 10 – 12%.

The applicant has sought the advance ruling on the issue, whether UHT Sterilized Flavoured Milk is classifiable under Chapter 4 which pertains to Tariff Heading 0402 which covers ‘Milk containing added sugar or other sweetening matter’ or alternatively, Tariff Heading 0404 which covers ‘Other’, i.e. ‘products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included’.

The authority consists of members Manasa Gangotri Kata and KurinjiSelvaan V.S. ruled that UHT Sterilized Flavoured Milk marketed under the brand name ‘Britannia Winkin’ Cow Thick Shake’ by the applicant is not classifiable under the Tariff heading ‘0402 /0404″ but classifiable under CTH 22029930.

“We find that the applicant has relied on various decisions from different judicial fora and has claimed that the addition of flavour does not change the characteristics of the product and the product still remains milk and therefore classifiable under CTH 04. We do not disagree with the fact that the product in hand is a form of milk but as brought out supra, the product being a ready for consumption drink, i.e. a beverage with a basis of milk, is specifically classified under CTH 22029930 and excluded from the chapter 04. Further, the decisions in the cases relied upon on the classification, the same is based on the tariff existed before aligning the same with HSN. In this connection it is relevant to note that the classification of ‘flavoured milk’, has been represented before the GST Council and the Council has considered the same in the 31st GST Council Meeting,” the authority said.