Product ‘Laban’ having main ingredients curd, water and spices is classifiable as Lassi under HSN 0403 90 and exempt from GST

Case details: Authority for Advance Rulings, Gujarat Sampoorna Dairy and Agrotech LLP, In re - [2021] 131 taxmann.com 132 (AAR - GUJARAT)

Judiciary and Counsel Details

• • Sanjay Saxena and Arun Richard, Member 
  • Kaushik Nahar, CS for the Applicant.

Facts of the Case

The applicant was manufacturing a product ‘Laban’ whose main ingredients of product were curd, water and spices. It was of the view that the product was Lassi in Indian vocabulary with same contents and characteristics which would be sold in the name of ‘Laban’. It filed an application for advance ruling to determine whether product manufactured as ‘Lassi’ but named as ‘Laban’ can be classified as Lassi under GST.

AAR Held

The Authority for Advance Ruling observed that Lassi is a fermented milk drink and its main ingredients are curd, water and spices. In the instant case, inferring from the manufacturing process submitted by the applicant and the contents of the subject goods printed on its bottle, it was clear that subject goods would be classified as Lassi under HSN 040390 and would be exempt from GST.