Heritage Foods Secures CGST Refund As Chennai Authority Overturns Rejection

 Heritage Foods Ltd, one of India’s leading dairy companies, announced that CGST Chennai has sanctioned refund orders, overturning earlier rejections. The refunds pertain to Goods and Services Tax (GST) paid under protest on flavored milk, a product whose classification had been disputed. The Supreme Court’s dismissal of departmental appeals earlier this year confirmed that flavored milk falls under the 5% GST slab, rather than the higher 12% rate.  

Key highlights from the announcement include  

• CGST Chennai sanctioned refund orders for Heritage Foods, reversing prior rejection.  
• Refunds relate to GST paid under protest on flavored milk classification.  
• Supreme Court ruling earlier confirmed flavored milk attracts 5% GST under tariff heading 04029990.  
• Heritage Foods had paid over Rs 4.53 crore in GST under protest, including CGST, SGST, and IGST components.  
• The refund order strengthens the company’s financial position and regulatory clarity.  
• This decision underscores the importance of judicial clarity in resolving tax disputes.  
• Heritage Foods continues to expand its dairy portfolio while ensuring compliance with evolving GST norms.  

The favorable ruling provides Heritage Foods with financial relief and sets a precedent for similar disputes in the food and beverage sector. It highlights how judicial and regulatory alignment can reduce uncertainty for businesses operating in India’s complex tax environment.  

Sources: A2Z Taxcorp, Stock Insights