GST rate on Sweet curd

[Bibhu Tripathy]

sir,

please specify the GST rate on sweet curd. Whether it is nil rated or not.

with regards

[KASTURI SETHI]

Curd falling under HSN 0403 90 90 attracts NIL rate of tax. Notification No.2/17-CT(R) dated 28.6.17 as amended (serial no.26) refers. See the title (Heading) of Chapter/Heading 0403 it contains whether added sugar or not ;sweetened or not. Hence sweet curd is also covered here and attracts NIL rate of tax. It is worthwhile to mention that Yogurt and Curd are two different goods. Difference is of the processes.

[Ganeshan Kalyani]

Sweet curd is exempt.

[Shilpi Jain]

It also depends on how are you naming this product. If we look at the rate notification for goods lassi and curd are exempt. Whereas yogurt is liable to GST.

I was also looking at this aspect and searched in google and noted that yogurt is what we call 'curd' in India. Curd obraod mean something obtained from curdled milk i.e. the process of making paneer. So without getting into all these confusions ensure that the product is named appropriately in the market so that the exemption can be claimed without any dispute.

[YAGAY andSUN]

Naming of product and classification as per GIR, both are two different aspects in the eye of law.

[Shilpi Jain]

Agreed sir. I mentioned that in the present case only because youghurt and curd mean almost the same to the Indians.

[Shilpi Jain]

whereas the rate of taxes are different for both under GST

[KASTURI SETHI]

Respected Madam,

When process of manufacture is different, character of the goods will be different. Identification is different. Yogurt contains more protein (double) than curd. Yogurt is an industrial product.That is why sweet curd is exempted and yogurt (or yoghurt) is taxable.

AI Summary

Exemption for sweet curd under GST: classification and naming determine whether curd is nil-rated or yogurt is taxable under GST. Sweet curd falls within the Chapter/Heading 0403 grouping and is covered by the nil rate/exemption in the relevant GST rate notification, so sweetened curd is exempt. Product identification and classification are decisive: naming and labeling per classification rules are distinct from tariff scope, and where the product's character aligns with yogurt (a processed industrial product) it is taxable rather than exempt.