A writ petition has been filed challenging the GST Council’s decision to classify “Flavoured Milk” under HS Code 2202, which contradicts previous court precedent and violates constitutional provisions. The petitioner argues that “Flavoured Milk” should be classified under Tariff Heading 0402 and subject to a 2.5% Central Tax. The High Court clarified that the GST Council’s power is recommendatory and that classification must adhere strictly to the Customs Tariff Act, 1975. The court held that the GST Council incorrectly classified “Flavoured Milk” and lacks the authority to determine classification. The court affirmed that the interpretation of goods or services under GST must strictly adhere to the Customs Tariff Act, 1975.
Source Darda Advisors
