In M/s. Sampoorna Dairy and Agrotech LLP. [Advance Ruling No. GUJ/GAAR/R/30/2021 dated July 19, 2021], M/s. Sampoorna Dairy and Agrotech LLP. (Applicant) has sought an Advance Ruling on whether the product ‘Lassi’ but named as ‘Laban’ is to be classified as Lassi itself and whether the same is exempted under the Central Goods and Services Act, 2017 (CGST Act).
The Hon’ble Gujarat Authority of Advance Ruling (GAAR) held that “Lassi” being a fermented drink is made up of curd, water and spices. Although, the ingredients mentioned on the bottle of “Laban” consists of Pasteurized toned milk, spices, pudina, green chilli, ginger, salts, active culture, added nature identical flavour and stabilizer mentioning the beverage to be “Dairy-based fermented drink”.
Held that based on the inferences and similarity of ingredients in Lassi and Laban, the goods can be considered under the head of Lassi which has been described in Sr. No.26 of Notification No.2/2017-Central Tax (Rate) dated June 28, 2017 (“Goods Exemption Notification”).
Ruled that the subject is classifiable at HSN 040390 therefore being exempt under Goods and Services Tax (“GST”).
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