GST on Milk Chilling Units

[Guest]

Whether GST is applicable on MILK CHILLING UNIT or Not?

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 25 of Notification No. 2/2017-Central Tax (Rate) dated 28.6.2017 as amended " Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk is exempted from gst..

As per Sl. No. 7 of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended Ultra High Temperature (UHT) milk falling under Tariff item 0401 will attract gst @ 2.5%. In my opinion chilled milk merit classification fresh milk only and hence the same is exempted from gst.

[Rajagopalan Ranganathan]

Sir,

Milk chilling units are classifiable under heading No.8418 as "Refrigerators, freezers and other refrigerating or freezing equipment, electric or other" and chargeable to gst @ 28% (CGST 14% + SGST @14% or IGST @28%) vide Sl. No. 120 of Schedule IV of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended.

[Guest]

Sir, please share the legal view taken by you in arriving at such decision.

AI Summary

GST Debate: Milk Chilling Units Face 28% Tax, While Fresh Milk Exempt; UHT Milk at 2.5% GST Rate A discussion on the applicability of GST on milk chilling units included three replies. One participant noted that fresh and pasteurized milk, excluding UHT milk, is exempt from GST, while UHT milk incurs a 2.5% GST. Another participant clarified that milk chilling units fall under the classification of refrigerating equipment, subject to a 28% GST. A third participant requested the legal rationale behind the decision. The forum served as a platform for knowledge sharing on the GST implications for milk chilling units.