The applicant intends to supply a variant of ready to consume pouch milk fortified with vitamins A and D and small quantities of turmeric (Haldi) and black pepper extracts. It wants to know whether the product can be classified under HSN 0401 and exempt under Serial No. 25 of Notification No. 2/2017- Central Tax (Rate) dated 28/06/2017
HELD BY AAR that as per Circular No. 52/26/2018-GST dated 09/08/2018 of TRU, Department of Revenue, Government of India (Trade Circular No. 11/2018 dated 13/08/2018 of the State Government) already clarifies that milk fortified with vitamins A and D is classifiable under HSN 0401. Milk remains classified under HSN 0401 even if a small quantity of items containing anti-oxidant properties are added.
Thus, the applicant’s product remains classifiable under HSN 0401 even after a small quantity of curcuminoids, having ant-oxidant properties, are added. It follows that the product is exempt under Entry No. 25 of the Exemption Notification.
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