Supreme Court upholds 5% GST on badam-flavoured milk

The Supreme Court on Friday dismissed an appeal by the Revenue Department against a ruling by the Andhra Pradesh High Court on 5 per cent GST on badam-flavoured milk. Based on this, experts believe the GST Council may consider reviewing the levy on flavoured milk.

The Andhra Pradesh High Court, in the case of Sri Vijaya Visakha Milk Producers Company Ltd, classified ‘flavoured milk’ with almonds (badam) under Entry 0402 9990, attracting GST at 5 per cent. Earlier, the Madras High Court, in the case of Parle Agro, also held that flavoured milk should be classified under HSN 0402 and would thus attract GST at 5 per cent.

Fresh milk and pasteurised milk are fully exempt from GST. Further, milk products like curd, lassi, buttermilk, and paneer are also exempt from GST if sold loose, but attract 5 per cent GST when sold in pre-packaged and labelled form. Ultra-High Temperature (UHT) milk also attracts 5 per cent GST. Additionally, a GST of 12 per cent applies to condensed milk, flavoured milk, butter, ghee, and cheese.