In re Sampoorna Dairy and Agrotech LLP (GST AAR Gujarat)
Whether product manufactured as ‘Lassi’ but named as ‘laban’ can be classified as Lassi under Description of Goods, Is the goods taxable or exempted, If exempted, HSN of the Product and rate of tax on product and If taxable, HSN of product and rate of tax on product?
Lassi is a fermented milk drink and its main ingredients are curd, water and spices. We have noted the manufacturing Process submitted by the applicant. On reading the contents of the subject goods displayed on the bottle of ‘laban’, we find following ingredients printed on the bottle: Pasteurized toned milk, spices, pudina, green chilli, ginger, salts, active culture, added nature identical flavour and stabilizer (INS440). Further, on the bottle of ‘laban’ we note that ‘‘Dairy based fermented Drink’ is printed.
Inferring from the manufacturing process submitted and the contents of the subject goods printed on its bottle, we hold subject goods are Lassi. We find goods ‘Lassi’ is described at Sr. No.26 of Notification No.2/2017-Central Tax (Rate) dated 28-6-17.
The goods are classified as Lassi at HSN 040390 and is exempt from GST.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
BRIEF FACTS
The applicant, Sampoorna Dairy and Agrotech LLP, submitted that their product ‘Lassi’ will be named as ‘Laban’ and sold under Brand name of ‘Elan’ in following 4 flavours:
Plain – No salt and sugar.
Cumin and salt.
Strawberry, sweetened with sugar.
Blueberry, sweetened with sugar.
2. The applicant has submitted that the product is Lassi in Indian vocabulary with same contents and characteristics which will be sold in the name of ‘Laban’. The applicant has submitted that the manufacture of the said product involves the following steps/process:
a) Receiving milk in silos.
b) Standardization: Standardization means minimum 3.0% fat and 8.5% SNF are required to prepare curd from cow milk. But in cow milk fat available is 3.7% or 3.8% and SNF 8.2% or 8.3% to maintain the above standard for manufacture of curd standardization.
c) Homogenenization – 180 bars (60-65o C).
d) Pasteurization- (90o C for 10 minutes).
e) Curd milk inoculation (with DIV/Bulk culture).
f) Curd fermentation.
g) Curd put in blending machine for mixing from solid form to liquid forms (agitation).
h) Chilling/Texturizing & Storage ( below 5o C).
i) Laban filling in bottle or other packing options of various quantities as per the requirement of customers from 150 ml. onwards.
j) Bottle capping, sleeving, coding and web sealing.
k) Palletazation.
l) Cold storage(Below 50o C).
m) Dispatch through Refrigerated van.
3. The applicant opines subject goods is classifiable under HSN 04039090 and is exempted from GST as they appear at Entry No.26 of Exemption Notification No.2/2017-Central Tax(Rate) dated 28-6-17 and reads as follows:
