The Union of India filed Special Leave Petitions (SLPs) before the Supreme Court challenging three judgments of the Andhra Pradesh High Court dated 29 January 2025 in Writ Petitions Nos. 27108, 22055, and 21998 of 2021. The High Court had held that “flavoured milk” is classifiable under Tariff Item 0403 (“buttermilk, curdled milk, and other fermented or acidified milk and cream”) and therefore taxable at 5% under the Goods and Services Tax (GST) regime.

The Union of India contended that flavoured milk is a distinct product that falls under Tariff Item 2202 (“beverages containing milk”), taxable at 12%. It argued that the process of flavouring, sweetening, and heat treatment transforms the product into a beverage, not plain or fermented milk. The respondents, M/s Heritage Foods Ltd. and others, argued that flavoured milk remains milk in composition and character, with flavouring merely enhancing taste, not altering classification.

The Supreme Court dismissed the petitions filed by the Union of India. It noted that the issue of classification of “flavoured milk” had already been decided by the Court in Union of India v. Gujarat Co-operative Milk Marketing Federation Ltd. (SLP (C) Diary No. 17602 of 2025), where it upheld classification under Tariff Item 0403 with 5% GST.

Following that precedent, the Court held that the High Court’s decision in favour of the 5% rate was consistent with the law. Consequently, the present petitions were dismissed, and all pending applications were disposed of.