Resolve GST rate ambiguity on flavoured milk, levy 5%: dairy industry
Dairy industry in Telangana has urged the State government to help resolve ambiguity surrounding the Goods and Services Tax rate on flavoured milk by pushing for a formal GST Council notification for a uniform 5% levy.
The State government recommending uniform GST classification for flavoured milk under the 5% GST slab will be in line with judicial rulings and industry practices as well as ensure clarity, consistency and fair taxation, the industry said after its representatives met Commissioner of Commercial Taxes K. Haritha here recently and submitted a representation.
They informed the official that a majority of industry players had already adopted the 5% GST rate for flavoured milk, based on recent court rulings that classify flavoured milk under HSN 0402 as a dairy product, not as an aerated or beverage item.
The delegation included K. Balakrishna Reddy, Secretary, Indian Dairy Association and Head of Operations, Dodla Dairy; J. Sambamurthy, COO, Heritage Foods; V. J. Michel Pitra, CFO, Lactalis India (Thirumala Dairy); P.P. Manoj, CFO, Creamline Dairy Products (Jersey); Azeem of Masqati Dairy; and CA Mohd. Irshad Ahmed, Chairman, GST and Customs Committee of trade and industry body FTCCI.
Dairy sector is crucial for rural livelihoods and consumer health. Misclassification or higher taxation on value-added dairy products like flavoured milk can disrupt both the supply chain and affordability, the delegation said.
Ms. Haritha assured the delegation that the matter would be examined and appropriately taken up with higher authorities.
Separately, in a representation to the Secretary, Fitment Committee of the GST Council Secretariat in Delhi, the Telangana Chapter of Indian Dairy Association appealed to the Committee to retain the 5% GST on flavoured milk and not increase it to 12%.
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