KMF Requests Govt to Rollback New GST Rate on Dairy Products

Dairy Farmer is Not Accepting the Increase in GST Rates

As the government has raised the GST on dairy products. The GST rate has risen from 5%. Also, the GST rates are raised on the machinery utilized in the dairy industry.

The same would become a problem for the dairy farmers. Because of the same procedure chosen by the government a type of crisis would be seen in the dairy industry. The state of Uttar Pradesh is been expected to comply with the same concern regarding the revamp of the GST rate chosen by the state government because the state comes beneath the largest milk producer in India among the other states.

This decision of the government has disrupted the cycle of the dairy farmers. The cost of curd, lassi, butter, milk and panner has risen. Also, the exemption on the prepacked and prelabelled retail packs on the things consisting of curd, lassi, and buttermilk has been removed which was executed before.

KMF, which is the largest operator in dairy and dairy products in Karnataka state, is expressed to raise the cost of curd by rupee 2.2 per litre, lassi and buttermilk by rupee 3.75 Per litre, and rupee 3 per litre, respectively. A request for taking back the decision is desired via a memorandum to the government.

According to the initial computation post, the declaration of the rates the federation is expected to file a GST of 22 lakh per day on its total sales of curd, lassi, buttermilk, and paneer. The central government is waiting for transparency in it. under the 18 per cent GST dairy and milking machinery will come as well as the tetra pack paper would indeed get taxes with 18% GST.

India comes under the largest milk producer in the world, which counts for more than 22% of the world and 57% of Asia’s total milk production. Milk production in India gets rises from 17 million tonnes in the year 1951 to 187.7 million tonnes in 2018-2019. Dairy is the only agri-product in which around 70-80 per cent of the final market value is shared with farmers.

Read Also: Govt Agricultural Land Eligible for Tax Exemption U/S 2(13) for Business

The same is one-third of the ruler’s household income in India. The same revamps the livelihood, creates jobs, supports agricultural industrialization and commercialization, and enhances nutrition for the masses.