Supreme Court Upholds 5% GST on Flavoured Milk, Rejects Centre’s Plea for 12% Tax Rate

The Supreme Court of India upheld the "5% GST on flavoured milk," rejecting the Centre's plea for a 12% tax rate. The Centre argued for a higher rate, classifying flavoured milk as a 'beverage' rather than 'milk'. However, the apex court affirmed that flavored milk, despite additives like sugar and flavors, retains its essential character as milk, therefore attracting the lower 5% GST rate applicable to milk and milk products. This ruling provides clarity and relief to dairy companies and consumers of flavored milk.