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.

[AVINASH KUMAR]

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