Classification is always contentious; single GST rate can be cure-all

The Appellate Authority of Advance Ruling (AAAR) recently upheld the Gujarat Authority of Advance Ruling’s (AAR) decree that flavoured milk will not be considered as milk, but as a beverage, even though milk is a key ingredient in its preparation. The ruling came after ice cream major Validal challenged the AAR’s ruling which ordered GST to be applied to the company’s flavoured milk after classify…