Notification No. 30/2017 - Integrated Tax (Rate) Explained

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Notification No. 30/2017 - Integrated Tax (Rate): Seeks to exempt Skimmed milk powder, or concentrated milk.

GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Goods and Services Tax Council,

hereby exempts inter-State supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2), from the whole of the integrated tax leviable thereon under section 5 of the Integrated Good and Services Tax Act, 2017 (13 of 2017), subject to the condition specified in column (4) of the Table below, namely:-

Table

Sl. No.	Tariff item, sub- heading, heading or Chapter	Description of Goods	Condition
(1)	(2)	(3)	(4)
1.	0402	Skimmed milk powder, or concentrated milk.	When supplied to a distinct person as per sub - section (4) of section 25 of the Central Goods and Services Tax Act, 2017 (12 of 2017), for use in production of milk [for distribution through dairy cooperatives] and not for further supply of skimmed milk powder, or concentrated milk as such.

Explanation. –

In this notification, “tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

(Mohit Tewari)
Under Secretary to the
Government of India.

📚 Frequently Asked Questions (FAQs): Notification No. 30/2017 — Integrated Tax (Rate)

Q1: Is skimmed milk powder fully exempt under GST?

Answer: No, it is not fully exempt.
Exemption applies only under specific conditions like use in milk production and supply to a distinct person. Otherwise, GST is applicable.

Q2: What is meant by “distinct person”?

Answer: Different GST registrations of same entity in different states.
For example, Bihar branch and Jharkhand branch of same company are treated as separate persons under GST.

Q3: Can traders claim this exemption?

Answer: No, traders cannot claim it.
If you are selling milk powder as-is without using it in milk production, exemption is not allowed.

Q4: Does this apply to intra-state supply?

Answer: No, this is for inter-state supply only.
For intra-state transactions, CGST/SGST rules apply separately.

Q5: What happens if conditions are not met?

Answer: Full IGST becomes payable.
Plus, interest and penalties may also apply if wrongly claimed.

Q6: Is documentation required for exemption?

Answer: Yes, very important.
You should maintain proof of usage, recipient details, and cooperative linkage.

Q7: Can private companies claim this benefit?

Answer: Yes, in certain cases.
Later amendments allowed companies registered under Companies Act to avail benefit under conditions.

Q8: Is input tax credit allowed here?

Answer: It depends on transaction structure.
If supply is exempt, ITC may be restricted under GST rules.

Q9: What is HSN code for this exemption?

Answer: HSN 0402.
It covers skimmed milk powder and concentrated milk.

Q10: Why is government giving this exemption?

Answer: To support dairy sector and keep milk affordable.
It also helps rural economy and cooperative networks.

Q11: Can exemption be partially applied?

Answer: No, it’s conditional but full exemption.
Either all conditions are met or none.

Q12: How to ensure compliance?

Answer: Follow documentation and purpose clearly.
Many businesses opt for GST Return Filing support to avoid errors:
👉 https://finodha.in/gst-return-filing/