GST : Tea milk ‘OSAM Samridhi’ containing milk (98.85 per cent with 2 per cent fat), stabilizers (0.10 per cent) and flavours (0.05 per cent) and packed and sold in one liter polypack for preparation of tea since neither added with any sugar or sweetener nor concentrated or consumed instantly, is classifiable under Tariff Item No. 0401 20 00 of Customs Tariff Act, 1975 and exempted from GST under Sl. No. 25 of Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017.

AUTHORITY FOR ADVANCE RULINGS, JHARKHAND
HR Food Processing (P.) Ltd., In re
M V BADARI PRASAD AND PRADEEP KUMAR, MEMBER
ADVANCE RULING ORDER NO. JHR/AAR/2022-23/02
APRIL 27, 2022

Milk – Tea milk ‘OSAM Samridhi’ made up of fresh milk (98.85 per cent) after subjecting it to standardization to bring fat content to 2 per cent, heating followed by filtration, pasteurization, homogenization and mixing of permitted food stabilizers (0.10 per cent) and tea enhancing flavours like ginger (0.05 per cent) with no addition of sugar or sweetener and packed and sold to tea vendors in one liter polypack and used for preparation of tea – Said product having shelf life of only one day under prescribed storage condition and neither concentrated nor can be consumed instantly, classifiable under Tariff Item No. 0401 20 00 of Customs Tariff Act, 1975 as tea milk and not as beverage and same exempted from GST under Sl. No. 25 of Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017 [Jharkhand Goods and Services Tax Act, 2017] [Paras 4 to 7.6, 11 to 13][In favour of assessee]

Circulars and Notifications: Notification No. 2/2017-C.T. (Rate), dated 28-6-2017.

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Tea milk ‘OSAM Samridhi’ is classifiable under Heading No. 0401 20 00 & exempt under GST AAR