Dried softy ice-cream mix not dairy product, to be taxed at 18%: Raj AAR

IN a recent ruling, the Rajasthan advance ruling authority (AAR) has held that the dried softy ice-cream mix (low fat) in vanilla flavour, known as Vanilla Mix, is not dairy product and hence will be taxed at 18% instead of 5%.

- MONIKA YADAV @ New Delhi

The ruling signifies a shift in the classification of the product, and the decision is expected to have major implications for manufacturers and distributors in the food industry.

The advance ruling authority observed that the major ingredient of the product is sugar, and that the product “milk solids are added to sugar” and not that “sugar is added to milk solids”.