Lassi is Exempted under GST

Lassi is Exempted under GST In M/s. Sampoorna Dairy and Agrotech LLP. [Advance Ruling No. GUJ/GAAR/R/30/2021 dated July 19, 2021], M/s. Sampoorna Dai…

A2ZBimal Jain

Aug 24, 2021

Last update on Aug 24, 2021

Lassi is Exempted under GST

In M/s. Sampoorna Dairy and Agrotech LLP. [Advance Ruling No. GUJ/GAAR/R/30/2021 dated July 19, 2021], M/s. Sampoorna Dairy and Agrotech LLP. (“the Applicant”) has sought an Advance Ruling on whether the product “Lassi” but named as “Laban” is to be classified as Lassi itself and whether the same is exempted under the Central Goods and Services Act, 2017 (“CGST Act”).

The Hon’ble Gujarat Authority of Advance Ruling (“GAAR”) held that “Lassi” being a fermented drink is made up of curd, water and spices. Although, the ingredients mentioned on the bottle of “Laban” consists of Pasteurized toned milk, spices, pudina, green chilli, ginger, salts, active culture, added nature identical flavour and stabilizer mentioning the beverage to be “Dairy-based fermented drink”.

Held that based on the inferences and similarity of ingredients in Lassi and Laban, the goods can be considered under the head of Lassi which has been described in Sr. No.26 of Notification No.2/2017-Central Tax (Rate) dated June 28, 2017 (“Goods Exemption Notification”).

Ruled that the subject is classifiable at HSN 040390 therefore being exempt under Goods and Services Tax (“GST”).

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About Author

A2ZBimal Jain

Chartered Accountant

CA Bimal Jain is a Member of Institute of Chartered Accountants of India since May 1994 and Member of Institute of Company Secretaries of India since December 2006 along with a Bachelors degree in Law. Also, he is a Qualified SAP - FI/CO Consultant and has more than 21 years of experience in Indirect Taxation and specializes in all aspects of Service Tax, Value Added Tax (VAT)/ Central Sales Tax (CST), Central Excise, Customs, Foreign Trade Policy (FTP), Special Economic Zone (SEZ), Export Oriented Unit (EOU), Export-Import Laws and well acquainted with the concept and impact of way forward Goods and Services tax (GST).