Rajasthan AAR Sets 18% GST Rate on Infant Food Including Milk, Additional Ingredients

Infant food products containing ingredients other than milk could face an 18 per cent Goods and Services Tax (GST), differing from the 5 per cent rate for pure milk products, according to a recent judgment by the Rajasthan Authority for Advance Ruling (AAR).

This ruling emerged from a request by Jaipur-based Bebymil, which sought clarity on the GST rate for its infant food products sold under the brand name Momylac. The products in question include infant milk formula mixed with cereals and protein supplements, designed as a substitute for mother’s milk.

Read Also: GST Rate on Milk, Paneer & Dairy Products with HSN Code

The GST rates for products are assigned based on their Harmonized System of Nomenclature (HSN) codes. The AAR noted that these products are classified under HSN code 1901, which covers items where milk is merely one of several ingredients. This is in contrast to HSN code 0402, which pertains specifically to milk products, explained Sandeep Sehgal, a partner at the tax and consulting firm AKM Global.

The AAR ruled that products falling under HSN code 1901 should be taxed at an 18 per cent GST rate. Sehgal highlighted that items classified under HSN code 0402 are subject to a lower GST rate of 5 per cent. He further stressed that the composition of ingredients in any product is crucial in determining its classification and the corresponding GST rate.

Case TitleM/s Bebymil International Private Limited
GSTIN of the Applicant08AADCL6824D1ZM
Date09.04.2024
ApplicantMr Yashasvi Sharma
Rajasthan GST AARRead Order
Atul Mittal

Atul is a professional content writer with specialisation in business and marketing content. I have been writing tax articles and news for about two years now and have good experience in GST and income tax domains.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

16 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

18 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

19 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

21 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago