Quick Summary
In a recent ruling, the Rajasthan bench of the GST Authority for Advance Rulings (AAR) determined that the softy ice-cream mix, sold by VRB Consumer Products, is primarily sugar-based, and not a milk product. As a result, it will attract a Goods and Services Tax (GST) rate of 18%. The ruling emphasi
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FAQ :
The Rajasthan bench of the GST Authority for Advance Rulings (AAR) ruled that softy ice-cream mix is primarily sugar-based, not a milk product.
The softy ice-cream mix will now attract a Goods and Services Tax (GST) rate of 18%.
The ruling was based on the product's composition, which contains 61.2% sugar and only 34% milk solids, making it sugar-dominant.
No, the AAR rejected this classification because the product's high sugar content and the presence of additives meant it could not be considered a 'natural' milk product eligible for a lower tax rate.
Yes, this decision is expected to set a precedent for the tax classification of other similar products containing milk.
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