GST rate tussle over flavoured milk

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As we know Flavoured milk has found various flavours with different Authorities for Advance Rulings (AARs). While Gujarat AAR followed its counterparts in Tamil Nadu and Andhra Pradesh to hold GST at the rate of 12 per cent, the Karnataka AAR went for 5 per cent. In this article, we will discus on GST rate tussle over flavoured milk.

Before talking over the significant factors related to GST on Mask, first, we discuss the concept of GST.

Understand about GST

GST is understood to be the Goods and Services Tax which is levied on the supply of goods and services. The major matter of this taxation system is to monitor the cascading consequence of other indirect taxes. GST is compelled only on value addition at each stage. Although, GST Registration is significant for registering any business.

Notificatiion on GST rate tussle over flavoured milk

Latest rulings from Gujarat are pertained with two popular milk product brands, Amul and Vadilal. Gujarat Co-Operative Milk Marketing Federation Ltd, owner of Amul brand, approached AAR to get ruling respecting on its flavoured milk product sold under trade name of ‘Amul Kool/Amul Kool Cafe’. Another application was moved with related question by Vadilal for its flavoured milk product being sold under the trade term of ‘Power Sip’.

Gujarat Co-operative fulfilled that the procedure of the flavoured milk is standardisation of fresh milk according to the fat contents and then heating at certain temperature followed by filtration, pasteurisation and homogenisation and then mixing of sugar and several flavours and finally bottling.

GST on Flavoured Milk

The Indian government presently charges a GST of 5 percent for flavoured milk. Whereas milk products are enumerated in Chapter 4 of the tariff list and flavoured milk will be covered under tariff item/HSN (Harmonised System of Nomenclature.

SAC Code applicable to Flavoured Milk

The following SAC (Service Accounting Code) has been established for the different Books in India.

  • SAC Code 9988 manufacturing of products
  • SAC Code 99881– Food Bevarges manufacturers.
  • SAC Code 998815- Dairy products manufacturers.

Update in GSTR-1, 2B & 3B Forms Under QRMP Scheme for Taxpayers

Moreover, If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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