GST Rate on Fortified Toned Milk | Latest update from Government

If you are coming under GST and are into the business of Fortified toned milk then you must read this.  There was little confusion on how much GST rate on Fortified toned milk is to be charged.  The government in this regard issued a circular to clarify this matter.

Therefore in order to understand the overall concept of the GST on fortified milk we need to understand the broad meaning of Fortified milk.

GST Rate on Fortified Toned Milk pic

What is the Fortification of Milk?

According to Live online website, it is the process of adding micronutrients like vitamins and minerals to food. The purpose of adding such vitamins and minerals is to reduce the rate of common deficiencies and diseases that may occur in the food.

Vitamin A is very important for vision and other gene transcription.   Whereas vitamin D is rich in calcium and helps to improve the immune system.  Therefore, milk with this additional process of inclusion of other nutrients in it called fortified toned milk under GST.

Fortification process of Milk pic

What is the GST Rate on Fortified Toned Milk?

At present milk is coming under the category of Heading 0401.  According to the previous notification of government S.No. 25 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 below items attract the NIL rate of GST.  In other words below items are exempted from the purview of GST.

  • Fresh milk
  • Pasteurized milk
  • separated milk
  • Milk and cream
  • Not concentrated nor containing added sugar or other sweetening matter
  • Excluding Ultra High Temperature (UHT) Milk falling under tariff head 0401

Further as per HSN explanation, milk enriched with vitamins and minerals is classifiable under HSN code 0401.  Therefore it is clear that toned milk fortified (with vitamins A’ and ‘D’) attracts an NIL rate of GST under HSN Code 0401.

GST Rate on Fortified Toned Milk  = Nil Rate of Tax.  HSN = 0401

The Conclusion

Therefore it’s very clear now that there is no GST charge on such fortified toned milk.  This is very useful to clarify the matter as this product is related to dairy and the manufacturing process of other farm-related products.  Most Agriculture products do not come under GST cover.

This clarification will be very useful to sort out the confusion among taxpayers and consumers.  Because if the government charges any GST Rate on such products, then definitely the prices of such products will go high and common men will not be able to include them in their daily diet.

This clarification covers the GST rate on milk, GST rate on mixed milk, GST rate on dairy products, and GST rate on packaged milk.  Also, Curd; Lassi; Buttermilk, Chena, or paneer, other than put up in unit containers and bearing a registered brand name;  are exempted from GST and No GST is leviable on these products.

This Article has reference to Circular No.52/26/2018-GST dt.09th August 2018, F.No.354/255/2018-TRU (Part-2) issued by the Government of India, Ministry of Finance, Department of Revenue (Tax Research Unit).