Sampoorna Dairy and Agrotech – the manufacturer in question – sells lassi in the brand name ‘Elan’, in four flavours.
However, it has been clarified that flavoured milk is not exempt from the same. The bench has noted that the primary ingredients in the lassi being sold were – curd, water and spices. The bottle displayed the ingredients – pasteurized toned milk, spices, pudina, green chilli, ginger, salts, active culture, added nature-identical flavour and stabiliser. It also said that it was a ‘dairy-based fermented drink’.
Curds, lassi and buttermilk fall under a specific category which exempts it from the tax (HSN 040390). The Gujarat AAR itself had held in another case that flavoured milk would have 12 per cent GST as it falls in a different category (HSN 22029930). “In essence, both lassi and flavoured milk are dairy-based drinks, but the classification codes treat them differently,” TOI quoted a tax expert.
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