Infant milk formula attracts GST at 18% rules AAR


MUMBAI: The GST-Authority for Advance Rulings (Rajasthan bench) has held that Bebymil was accurately levying and amassing Goods and Services Tax (GST) at 18% towards its toddler milk formula merchandise.
These merchandise, which had variations primarily based on age, had been bought beneath the model title of Momylac. The producer approached the AAR as some rivals had been charging GST solely at 5%.
The AAR held that Chapter 4 offers with milk merchandise solely. However, within the case of the applicant milk was one of many constituents of Momylac. The product additionally contained cereals, protein dietary supplements and so on – the substances assorted primarily based on the toddler’s age. Thus, the producer had accurately computed GST at the next charge.
Tax specialists emphasize that the classification norms have to change into less complicated. In the previous the Gujarat AAR bench has held lassi to be exempt from GST, however flavoured milk was held taxable at 12%
The HSN (Harmonised System of Nomenclature) classification, which serves as the premise for GST categorization, adheres to an internationally accepted system developed by the World Customs Organization. In India, this technique is intensive, comprising 21 sections, 99 chapters, 1,244 headings, and 5,224 sub-headings. Each part and chapter embody broad classes of products, whereas headings, and sub-headings present intricate particulars.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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