The West Bengal Authority of Advance Ruling (AAR) ruled that the Milk with turmeric and black pepper extracts is classified under HSN 0401, so the NIL rate of GST is applicable.
The applicant, ITC Limited intends to supply a variant of ready to consume pouch milk fortified with vitamins A and D and small quantities of turmeric (Haldi) and black pepper extracts.
The applicant submits a print-out of the pack design, which describes the product as pasteurized milk with Haldi, fortified with vitamins A and D. Ingredients of the product are toned milk, turmeric and black pepper extract powders, vitamins A and D. It is to be sold under the brand name “Aashirvaad Svasti”.
The applicant also submits an Analysis Report, prepared by ITC Life Sciences & Technology Centre, of a 100-gram sample of the product, stating that total curcuminoids present in the sample are 0.0161%. Vitamin A and D added are 45.50 mcg and 0.96 mcg, respectively. Fat content is 3.60%.
The applicant sought the advance ruling on the issue of whether the product can be classified under HSN 0401 and exempt under Serial No. 25 of Notification No. 2/2017- Central Tax (Rate) dated 28/06/2017 (Exemption Notification).
The two-member bench consisting of Susmita Dey and Parthasarthi Dey observed Explanatory Note concerning HSN 0401, which says that products of this heading may be frozen and may contain the additives referred to in the General Explanatory Note to this Chapter.”
The said General Explanatory Note states that Chapter 4 covers milk (full cream milk and wholly or partially skimmed milk), cream, buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whey, the products consisting of natural milk constituents, not elsewhere specified or included, butter and other fats and oils derived from milk, dairy spreads, cheese and curd.
Therefore, AAR held that the Milk with turmeric and black pepper extracts is classifiable under HSN 0401 and is exempt under Serial No. 25 of Notification No. 2/2017- Central Tax (Rate) dated 28/06/2017 (1126-FT dated 28/06/2017 of the State Notification), as amended from time to time.
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