Infant Food Products Containing Milk And Other Ingredients Subject To 18% GST: AAR
Mariya Paliwala
8 Jun 2024 5:45 PM IST
The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.The bench of Mahipal Singh and Mahesh Kumar Gowla has observed that, as per Chapter 19, milk products are one of the constituents of the final product, whereas Chapter 4 deals with milk products only. The principle or dominant item of the applicant...
The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.
The bench of Mahipal Singh and Mahesh Kumar Gowla has observed that, as per Chapter 19, milk products are one of the constituents of the final product, whereas Chapter 4 deals with milk products only. The principle or dominant item of the applicant is the manufacturing of infant milk formula containing cereals, protein supplements, etc., which is a substitute for mother's milk for infants. Therefore, it is more appropriate to classify the manufactured product by the applicant under HSN 19011090.
The applicant, Bebymil International Pvt. Ltd., is engaged in manufacturing infant milk formula, infant cereals, and protein supplements for children and adults. The company's product portfolio includes a wide range of infant nutrition products, such as Momylac infant formulas, infant cereals, and protein supplements for children and lactating women. The principal or dominant item of the applicant is manufactured under the name “infant milk formula,” which is being used as a substitute for mother's milk for infants.
The principal or dominant item of the applicant is infant milk formula, which serves as a substitute for mother's milk for infants. The products are designed to meet specific nutritional requirements for different age groups and conditions, such as low-birth-weight infants and lactose-intolerant babies. Detailed descriptions of the products, including their nutritional composition and benefits, were provided by the applicant to support their classification and tax treatment.
The manufacturing process involves the formulation of infant milk formula using ingredients such as whole milk powder, whey protein concentrate, soybean fat, lactose, vitamins, and minerals. The products are designed to support various aspects of infant growth and development, including gut health, bone development, brain development, and immunity.
The applicant sought an advance ruling on the GST classification and applicable tax rates for “Momylac” infant milk formula.
The AAR held that the rate of GST payable by the applicant for the supply of “milk food for babies” and “milk for babies” is 18% (9% CGST and 9% SGST and 18% IGST) under HSN 19011090.
Applicant's Name: Bebymil International Pvt. Ltd.
Date: 09/04/2024
