Recently the Maharashtra government announced that it will request the central government to look through the goods and services tax on butter and ghee.
Currently, the milk products are in the 12 per cent GST slab rate which is under discussion for reduction. The major point for the reduction in tax rate is the nutritional value it provides to the public.
Dairy Development Minister said in the legislative assembly that the government will try to convince the central authorities as well as GST council for any possible reduction in tax rates of butter and ghee.
The dairy development minister also claimed that the milk powder, as well as milk, will be provided under the schemes of School Education, Women and Child Welfare and Tribal Development Departments in their nutritious meals agenda.
Under the scheme, it is also suggested that an encouragement subsidy of INR 50 per kg will be provided to the milk producers for the milk powder export for coming 2 months duration.
Read Also: Goods and Services Tax Impact On Dairy Sector in India
While dairies will be given INR 5 per litre subsidy for milk exported in the coming 2 months duration. The Maharashtra government will try hard to get the GST rates on butter and ghee reduced.
