Dairy based fermented drink is ‘Lassi’ classifiable under HSN 040390 and exempt from GST
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Name of the Applicant: |
Sampoorna Dairy and Agrotech LLP |
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Appeal No.: |
GUJ/GAAR/R/30/2021 |
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Ruling pronounced by: |
GST AAR Gujarat |
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Date of Ruling: |
19-07-2021 |
Brief Facts:
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The applicant proposed to manufacture ‘Lassi’ to be named as ‘Laban’ in four different flavors- Plain, Salted, Strawberry with sugar and Blueberry with sugar. The applicant submitted the complete manufacturing process of the said product as below:
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The applicant opined that the goods so manufactured are classifiable under HSN 04039090 and is exempted from GST. |
Observations of Authority:
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Lassi is a fermented milk drink and its main ingredients are curd, water and spices. On reading the contents of the goods displayed on the bottle of ‘laban’, it is found that following ingredients are printed on the bottle: Pasteurized toned milk, spices, pudina, green chili, ginger, salts, active culture, added nature identical flavor and stabilizer (INS440). Further, on the bottle of ‘laban’, “Dairy based fermented Drink” is printed. |
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HSN 0403 reads as follows: “0403 Buttermilk, Curdled Milk and Cream, Yogurt, Kephir and other Fermented or Acidified Milk and Cream. Whether or not concentrated or containing added sugar or other sweetening matter of flavored or containing added fruits, nuts or cocoa. 0403 10 00- Yogurt 0403 90- Other: 0403 90 10 --- Butter Milk 0403 90 90 --- Other” |
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Explanatory notes to HSN for the heading 0403 read as follows: “This heading covers buttermilk, and all fermented or acidified milk and creams and included curdled milk and cream, yogurt and kephir. The products of this heading may be in liquid, paste or solid (including frozen) form and may be concentrated (e.g. evaporated or in blocks, powder or granules) or preserved. Apart from the additives mentioned in the General Explanatory Note to this Chapter, the products of this heading may also contain added sugar or other sweetening matter, flavorings, fruit (including pulp and jams), nuts or cocoa.” |
Ruling: Inferring from the manufacturing process and the contents of the subject goods printed on its bottle, we hold that subject goods are ‘Lassi’. Goods are classified as ‘Lassi’ at HSN 040390 and is exempt from GST.
Source: The above article is based upon the advance ruling rendered by Gujarat Advance Ruling Authority in the case as quoted above and can be accessed at: Sampoorna Dairy and Agrotech LLP- Gujarat AAR
Disclaimer: The above article is solely for informative purposes and should not be construed as the opinion of the 'Taxwink'. 'Taxwink' is not responsible for any loss or damage caused to any person due to application of the above information.
