Telangana Dairy Seeks GST Clarity on Flavoured Milk
A delegation led by K. Balakrishna Reddy of the Indian Dairy Association and Dodla Dairy petitioned Telangana’s Commercial Taxes Commissioner for clear GST guidelines on flavoured milk. Industry members report that most businesses are currently applying a 5% GST rate, treating flavoured milk as HSN 0402 (milk products) rather than as aerated beverages. This classification is supported by […]
Unseasonal Rains Hit Demand for Dairy-Based Summer Products Across Key Markets
India’s dairy and FMCG sectors are witnessing a sharp dip in demand for summer-centric dairy beverages and products like ice creams, flavored milk, and lassi due to unexpected rains and cooler weather in North India. According to the Retailers Association of India (RAI), sales of summer categories—including dairy-based refreshment drinks—have fallen by 15% over the […]
High Court Rules Flavoured Milk as Milk, Not Beverage for GST
In a significant ruling, the Andhra Pradesh High Court has sided with Dodla Dairy Limited, determining that flavoured milk should be classified under GST Tariff Heading 0402 99 90, which attracts a 5% tax rate, rather than under Heading 2202 99 30, which carries a 12% rate. This decision overturns a previous demand by the […]
Andhra High Court lowers GST to 5% for badam milk
The Andhra Pradesh High Court recently ruled that badam ‘flavoured milk’ is not a beverage but is classifiable under a specific entry as ‘milk.’ The matter highlights a yet another classification issue under the goods and services tax (GST) regime, that reached the courts and baffled both the dairy industry and the taxpayers. Simply put, […]
Added sugar levels in flavored school milk sees huge drop
The Healthy School Milk Commitment has led to a reduction of added sugar levels by 10% in flavored school milk between the 2023 and 2024 school years, according to the International Dairy Foods Association (IDFA). The Commitment was launched in April 2023 by 37 school milk processors representing approximately 95% of the school milk volume in […]
Assam’s ‘Purabi’ Dairy Launches Flavoured Milk
The West Assam Milk Producers’ Cooperative Union Ltd (WAMUL), which operates under the brand ‘Purabi’, has launched a new range of long shelf-life flavoured milk, becoming the first dairy unit in the North East to offer this product, a statement said on Saturday. Assam’s Minister for Cooperation Nandita Gorlosa launched three variants of flavoured milk […]
Buttermilk to Ice cream by dairy brands are capitalising on the summer boom
As mercury levels soar and heat wave conditions grip various parts of India, beverage and dairy companies are experiencing a welcome boost in sales. The scorching weather may be a challenge for many, but it’s proving to be a boon for businesses dealing in thirst-quenching beverages, curd, buttermilk, and ice creams. According to Jayen Mehta, […]
GST Council Cannot Classify Goods under GST on Flavoured Milk
While giving relief to Parle Agro on taxability of flavoured milk, the Madras High Court has held that GST Council cannot determine the classification, A single judge bench, in its recent ruling, held that flavoured milk would attract GST at the rate of 5 per cent. The GST Council, in its meeting on December 22, […]
NutriScore, Algorithm Update for Milk drinks and Beverages
On March 30, 2023 it Steering Committee of NutriScore (in which the governments of Belgium, France, Germany, Luxembourg, the Netherlands, Spain and Switzerland participate) has approved an update of the algorithm for drinks. (1) This completes the update of the nutritional profiles of #NutriScore which began with the changes to the algorithm, approved on July 26, 2022, […]
Flavoured milk is not milk but a drink containing milk. So pay 12% GST
As per the GST rules, there is no GST on fresh milk, pasteurised milk, curd and lassi. But if you buy flavoured milk, you pay GST of 12%. This is because flavoured milk ”is not milk” but a beverage in which milk is a component. You may have been counting your blessings all these years since […]