Case Law Details
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.
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