GST applicable to Products Manufactured as Pasteurised Milk and Milk Cream and Named as “Jigarthanda”: AAR [Read Order]

The Tamil Nadu Authority for Advance Ruling (AAR) has held that the Goods and Service Tax would be applicable on the products manufactured as pasteurised milk and milk cream in the name of “Jigarthanda”.

The applicant Madurai Famous Jigarthanda LLP was engaged in manufacturing dairy products in the name of “Jigarthanda” packed in unit container with Brand name and also in loose form bearing details like name of manufacturer or branches or others as required by the Food Safety and Standards Act 2006(FSSAI) or other relevant Acts, to consumers.

The Raw milk was converted to Pasteurized Milk by continuous process and collecting the Milk cream (Paladai) and it was mixed with pasteurised milk adding badam pisin, natural nannari syrup to make semi solid jigarthanda which was chilled in cold storage and marketed. The applicant has sought advance ruling as to whether GST would be applicable on this product.

Abdul Navas on behalf of the applicant submitted that Jigarthanda would fall under heading 0402 ‘Milk and cream containing added sugar or 0403 ‘Cream, yogurt, fermented milk.

He also submitted that the main ingredient of “Jigarthanda ” was pasteurised milk with added sugar & nannari syrup, badam pisin and milk cream and the final product was not fermented but pasteurised milk product. further stated that currently were classified this product under the HSN 0402 at 5% GST

The Authority for Advance Ruling of N. Usha (SGST Member) and R. Gopala Swami (CGST Member) observed that,

“As per “goods” defined under Section 2(52) of CGST Act, 2017 means, Jigarthanda manufactured using various ingredients or inputs was in the form of semi-solid form, as stated by the applicant, would satisfy the definition of “goods” and accordingly, “Jigarthanda” would be treated as goods.”

It was ruled that “Jigarthanda” was a taxable goods as it was covered under Notification No.1/2017 CTR dated 28.06.2017serial No.50 of Schedule II as “Beverages containing milk” attracting CGST at 6% and SGST at 6% vide serial No.50 of Schedule II of G.O. (Ms.) No. 62 dated 29.06.2077 for intra state supply. It attracts 12% IGST vide serial No.50 of Schedule II of Notification No. 1/2017 Integrated Tax (Rate) dated 28.06.2017 under HSN 2202 99 30.

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