18% GST on baby food products containing ingredients other than milk too

The Rajasthan Authority for Advance Ruling (AAR) issued a judgment stating that infant food products containing ingredients other than milk may attract an 18 per cent goods and services tax (GST), contrasting with the 5 per cent rate applicable to milk products. \r

This ruling came in response to an application by Bebymil, a Jaipur-based company, seeking clarification on the GST rate for its products marketed under the name Momylac. The AAR classified the products under HSN 1901, which covers items with milk as an ingredient, leading to the higher tax rate, explained Sandeep Sehgal, a partner at AKM Global. \r

The classification depends on the ingredients' proportion, influencing the applicable GST rate.