The Supreme Court of India has upheld the classification of flavoured milk as taxable at 5% under GST, dismissing a Special Leave Petition (SLP) filed by the Union of India. 

The bench of  Justice Pankaj Mithal and Justice Prasanna B. Varale affirmed the decision of the Andhra Pradesh High Court, which had ruled in favour of 5% GST instead of the 12% rate proposed by tax department.

The case involved M/s Heritage Foods Limited and arose from writ petitions decided by the High Court on January 29, 2025. The Supreme Court heard the matter on July 17, 2025.

The central question was whether flavoured milk should be classified as Item 04030000 – taxable at 5%, or Item 9930 – taxable at 12%.

The High Court had ruled that flavoured milk should be considered under Item 04030000, which falls within the category of milk and cream, attracting 5% GST. 

The Supreme Court upheld the classification that flavoured milk should be considered under Item 04030000, which falls within the category of milk and cream, attracting 5% GST.

The Court condoned a 30-day delay in filing the petition. However, it found that the same issue had already been decided in a prior case (SLP(C)(D) No. 17602/2025), which was dismissed on May 9, 2025. Based on precedent and the findings of the Writ Court, the present petition was also dismissed.

Case Details

Case Title: The Union Of India Petitioner(S) Versus M/S Heritage Foods Limited & Anr.

Case No.: SPECIAL LEAVE PETITION (CIVIL) Diary No. 30600/2025

Date:  17-07-2025 

Read More: India Begins Accepting Electronic Certificate of Origin from Mauritius Under Bilateral CECPA