- Supreme Court Ruling: The Supreme Court of India upheld the classification of flavoured milk as milk under GST, maintaining a 5% tax rate instead of the Union Government’s proposed 12%.
- High Court Support: The Andhra Pradesh High Court had previously ruled in favor of Heritage Foods Limited, stating that the addition of flavors does not alter the essential nature of the product as milk.
- Dismissal of Government Appeal: The Supreme Court dismissed the Union Government’s Special Leave Petition, citing a prior case that already established flavoured milk’s classification, allowing the lower tax rate to stand.
Source Taxscan
