Classification of goods— In the instant case, the applicant has sought Advance Ruling on the following questions:

1. Whether the product manufactured as pasteurized milk and milk cream but named “Jigarthanda” can be classified as Jigarthanda under description of goods?

2. Is the goods taxable or exempted?

3. If exempted, HSN of the product and rate of tax on product.

4. If taxable, HSN of the product and rate of tax on product.

The applicant has stated that they are manufacturing dairy products in the name of “Jigarthanda” packed in unit container i.e Vacuum Pouch (with Brand name) and also in loose form/ in bottles without sealing of packet/in loose carry bags and bearing details like name of manufacturer or branches or others as required by the Food Safety and Standards Act 2006(FSSAI) or other relevant Acts, to consumers. 

The short issue to be decided is whether the ready to drink Jigarthanda sold in unit container by the appellant is “goods”, if so, whether to be classified as 'Milk and Cream” covered under HSN 0402 as claimed by the applicant, if not, to decide the appropriate HSN and the rate of tax.

Held that—“Jigarthanda” manufactured by the applicant is covered under the description of goods. “Jigarthanda” manufactured by the applicant is taxable goods.“Jigarthanda” manufactured by the applicant is not exempted. 

“Jigarthanda” manufactured by the applicant is taxable goods. It is covered under Notification No.1/2017 CTR dated 28.06.2017 vide serial No.50 of Schedule II as “Beverages containing milk” attracting CGST @ 6% and SGST @ 6% vide serial No.50 of Schedule II of G.O. (Ms.) No. 62 dated 29.06.2077 for intra state supply. It attracts 12% IGST vide serial No.50 of Schedule II of Notification No.1/2017 Integrated Tax (Rate) dated 28.06.2017 under HSN 2202 99 30.