Classification of goods— In the instant case, the applicant is seeking an advance ruling in respect of the following questions:-

(a) What would be the classification of Flavoured Milk for Tea Preparation?

(b) What would be the rate of GST Applicable on the said product?

In the present case the dealer is intending to prepare Tea Milk. This milk comprises of 99.85% Milk, Flavor (Ginger) 0.05% and Stabiliser 0.1%. lt has fat content of 2%, as declared by the applicant. No sugar or sweetening matter has been added to the said product. The said product is neither UHT Milk nor it is a concentrated milk. 

The main purpose of this milk is to prepare tea and the dealer intends to sell it to the Tea Vendors and Hotels, Restaurants, Catering (HORECA) segment. Due to its ingredients, stabilizer and Ginger Flavor, its vendors will be able to prepare milk improving the taste and viscosity which will help in preparing more cups of tea with the same amount of milk.

Held that— the product 'Flavoured Milk for Tea Preparation' is found to be “Tea Milk” and it should be classified under Chapter 04 under heading 0401 20 00.

The said product is exempted from GST vide SI. No 25 of Not. No. 2/2017-Central Tax (Rate) dated 28-06-2017.