2025 (7) TMI 1524 - SC - GST

SC upholds 5% tax on flavoured milk under Item 04030000, dismissing petition challenging classification

The SC upheld the Writ Court's decision classifying flavoured milk under Item 04030000, subject to a 5% tax rate. The petition challenging this ... Classification of flavoured milk - to be classified as Item 403 taxable at the rate of 5% or as Item 9930 taxable at the rate of 12% - HELD THAT:- The Writ Court has held that it has to be classified as Item 04030000 and has to be taxed at the rate of 5%. Petition dismissed. The Supreme Court, through Hon'ble Justices Pankaj Mithal and Prasanna B. Varale, condoned a 30-day delay in filing the petitions (I.A. No. 157639/2025 allowed). The core issue was the classification of flavoured milk for GST purposes: whether it falls under Item 403 taxable at 5% or Item 9930 taxable at 12%. The Court noted that this issue has been previously decided, with the Writ Court holding flavoured milk is classifiable under Item 04030000 and taxable at 5%. Furthermore, a special leave petition (SLP(C)(D) No. 17602 of 2025) challenging this classification was dismissed by the Court on 09.05.2025. Consequently, the present petitions were dismissed, and all pending applications disposed of.