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MUMBAI: The GST Authority for Advance Rulings (AAR-Gujarat) has held that lassi, the fermented milk product, is exempt from items and providers tax (GST).
The AAR made the ruling in a latest case the place a Valsad-based producer and provider — Sampoorna Dairy and Agrotech — had approached it on the relevant GST charge.
On the flip facet, owing to the complexities in classification, AAR benches have held previously that flavoured milk is just not exempt from GST.
The Valsad-based dairy bought lassi underneath the model identify ‘Elan’ in 4 flavours — plain (with no sugar or salt added), salted with cumin, strawberry sweetened with sugar, and blueberry sweetened with sugar.
The AAR bench famous that the principle elements of the lassi that was being manufactured and bought had been curd, water and spices.
The elements displayed on the bottle had been pasteurized toned milk, spices, pudina, inexperienced chilli, ginger, salts, lively tradition, added nature-identical flavour and stabiliser. The bottle displayed that it was a ‘dairy-based fermented drink’.
Luckily for the producer, and the top client, curds, lassi and buttermilk come underneath a selected classification (HSN 040390) and are exempt from GST. Tax consultants level out that producers and suppliers of flavoured milk haven’t been as fortunate.
The Gujarat AAR itself, within the case of Amul, which manufactured and equipped flavoured milk (product of milk added with sugar and permitted flavours) had held {that a} GST charge of 12% would apply (HSN 22029930).
“In essence, each lassi and flavoured milk are dairy-based drinks, however the classification codes deal with them in another way,” mentioned a tax skilled.
The AAR made the ruling in a latest case the place a Valsad-based producer and provider — Sampoorna Dairy and Agrotech — had approached it on the relevant GST charge.
On the flip facet, owing to the complexities in classification, AAR benches have held previously that flavoured milk is just not exempt from GST.
The Valsad-based dairy bought lassi underneath the model identify ‘Elan’ in 4 flavours — plain (with no sugar or salt added), salted with cumin, strawberry sweetened with sugar, and blueberry sweetened with sugar.
The AAR bench famous that the principle elements of the lassi that was being manufactured and bought had been curd, water and spices.
The elements displayed on the bottle had been pasteurized toned milk, spices, pudina, inexperienced chilli, ginger, salts, lively tradition, added nature-identical flavour and stabiliser. The bottle displayed that it was a ‘dairy-based fermented drink’.
Luckily for the producer, and the top client, curds, lassi and buttermilk come underneath a selected classification (HSN 040390) and are exempt from GST. Tax consultants level out that producers and suppliers of flavoured milk haven’t been as fortunate.
The Gujarat AAR itself, within the case of Amul, which manufactured and equipped flavoured milk (product of milk added with sugar and permitted flavours) had held {that a} GST charge of 12% would apply (HSN 22029930).
“In essence, each lassi and flavoured milk are dairy-based drinks, however the classification codes deal with them in another way,” mentioned a tax skilled.
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