AAR rules 18% GST on infant food containing milk, other ingredients
Infant food products containing milk and other ingredients may be subject to an 18 per cent goods and services tax (GST), contrasting with the 5 per cent applicable to milk products, if a judgment by the Rajasthan Authority for Advance Ruling (AAR) sets a precedent.
The AAR issued the ruling in response to an application submitted by Jaipur-based Bebymil seeking clarification on the GST rate for its products — milk food for infants and milk for infants — marketed under the trade name Momylac.
The authority noted that the primary product manufactured by the company is infant milk formula, which includes cereals and protein supplements, serving as a substitute for mother’s milk.
