Dairy Industry | Hyderabad, June 13: Top representatives of Telangana’s dairy industry today submitted a formal representation to K. Haritha, Commissioner of Commercial Taxes, urging the State Government to recommend uniform GST classification for flavoured milk under the 5% GST slab, in line with judicial rulings and industry practices.
The delegation included K. Balakrishna Reddy, Secretary, Indian Dairy Association and Head of Operations, Dodla Dairy; J. Sambamurthy, COO, Heritage Foods Limited; V. J. Michel Pitra, CFO, Lactalis India (Thirumala Dairy); P.P. Manoj, CFO, Creamline Dairy Products Ltd. (Jersey); Mr. Azeem, Masqati Dairy; and CA Mohd. Irshad Ahmed, Chairman, GST & Customs Committee, FTCCI, among others.
The members informed the Commissioner that a majority of industry players have already adopted the 5% GST rate for flavoured milk, based on recent High Court rulings that classify flavoured milk under HSN 0402 as a dairy product, not as an aerated or beverage item.
Dairy Industry
Despite this, ambiguity in GST classification continues to create confusion and poses litigation risks. The dairy sector is now urging the Telangana Government to advocate for a formal GST Council notification to ensure clarity, consistency, and fair taxation.
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“The dairy sector is crucial for rural livelihoods and consumer health. Misclassification or higher taxation on value-added dairy products like flavoured milk can disrupt both the supply chain and affordability,” said the delegation in its appeal.
Commissioner Haritha acknowledged the concerns and assured the delegation that the matter would be examined and appropriately taken up with higher authorities.
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