In re Tirumala Milk Products Pvt Ltd (GST AAAR Andhra Pradesh)
The applicable HS Code for Flavoured Milk is 2202 9930 and GST rate is 12 % (6% CGST and 6% SGST) under entry no 50 of schedule II of Notification No. 1/2017 – Central Tax (Rate) Dated 28.06.2017.
Whether ‘flavoured milk’ can be considered a beverage containing milk? In common parlance, a beverage is “(chiefly in commercial use) a drink other than water. It is a liquid for drinking especially such liquid other than water (as tea, milk, fruit juice, beer) usually prepared (as by flavouring, heating, admixing) before being consumed”. The instant product, the flavoured milk is undoubtedly a beverage containing milk. It is moreover, a ‘preparation’ which was proved supra, substantiating the present argument.
It could be inferred from the above discussion that even though the product in question is a dairy produce and also an edible product of animal origin, the qualifier that it is “not elsewhere specified or included” makes it ineligible to be classified under the chapter 4. The product in dispute as it is already specified and included under chapter 22 dealing with goods /items of “Beverages, spirits and vinegar” makes it ineligible to be classified under chapter 4.
Thus, the commodity ‘flavoured milk’ merits classification under beverage containing milk under tariff heading 2202 90 30. The rate of tax applicable for the said tariff item is 12% GST (6% CGST + 6% SGST) under entry no. 50 of Schedule II of Notification No. 1/2017 – Central Tax (Rate) Dated 28.06.2017 as amended.
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
(Under Section 101 of the Central Goods and Service Tax Act and the Andhra Pradesh Goods and Service Tax Act).
At the outset, we would like to make it clear that the provisions of both the CGST Act and the APGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the APGST Act.
The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and APGST Act”] by M/s. Tirumala Milk Products Pvt Ltd (herein after referred to as the “Appellant”) against the Advance Ruling No. AAR No.28/AP/GST/2019 dated 15.07.2019 issued by Authority for Advance Ruling, Andhra Pradesh.
1. Background of the Case:
