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The applicant had submitted earlier than the AAR that the method of the flavoured milk is standardisation of recent milk in line with the fats contents after which heating at sure temperature adopted by filtration, pasteurisation and homogenisation after which mixing of sugar and numerous flavours and eventually bottling.
The authority mentioned that the flavoured milk could be classifiable as a ‘beverage containing milk’, which is taxable at 12 per cent beneath GST.
Earlier the Karnataka AAR, in an utility of Karnataka Cooperative Milk Producers Federation, had dominated that flavoured milk is taxable at 5 per cent.
AMRG & Associates Senior Accomplice Rajat Mohan mentioned contradictory AAR rulings and hyper-technical interpretation of tax price entries in GST regulation are resulting in litigation.
“Classification of able to eat flavoured and sweetened milk could be an issue of litigation in close to future because of the contradictory rulings given by state AAR benches,” Mohan added.
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