GST on Milk Chilling Units

[Asked by 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.

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

AI Summary

GST on milk: chilled milk treated as fresh and exempt, while chilling units attract standard rate.
Chilled milk is treated as fresh milk and is exempt from GST under the relevant rate notifications, while milk chilling units are classified as refrigerating or freezing equipment under the applicable tariff heading and attract the standard GST rate for such machinery.