Categories: Business

Lassi was released from GST, but not flavorful of milk

Mumbai: GST authorities for Aar-Gujarat’s continued decision have resisted Lassi, fermented milk products, freed from goods and services (GST).
AAR made decisions in recent cases where Valsad-based manufacturers and suppliers – Sampoorna Dairy and Agrotech – have approached it at the applicable GST level.
On the other hand, because the complexity in the classification, AAR bench has been held in the past that milk flavors are not released from GST.
Varsad-based milk sells Lassi under the brand name ‘Elan’ in four flavors – plain (without sugar or salt added), salt with cumin, strawberries are sweetened with sugar, and blueberries are sweetened with sugar.
Aar’s bench noted that the main ingredients of Lassi were being produced and sold curd, water and spices.
The ingredients displayed on the bottle masturing fast milk, spices, pudahes, green chili, ginger, salt, active culture, adds to identical flavors and stabilizers.
The bottle displays that it is ‘milk-based fermented drink’.
Fortunately for manufacturers, and end consumers, curds, Lassi and Buttermilk are under certain classifications (HSN 040390) and are released from GST.
Tax experts show that producers and suppliers of milk doan are not lucky.
Gujarat Aar himself, in the case of Amul, which produces and supply milk flavors (made of milk coupled with sugar and permitted flavors) have argued that the GST level of 12% will apply (HSN 22029930).
“In essence, Lassi’s milk and flavor are milk-based drinks, but the classification code treats them differently,” said a tax expert.

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