On Tuesday, Union Minister of State for Finance, Pankaj Choudhary said that there is no plan to remove milk and milk-based products from Goods and Services Tax (GST) because the rates are decided on the recommendation of the GST Council.
There is no GST levied on fresh milk and pasteurized milk, said Chaudhary. The rates are specified on the GST Council’s recommendation that consists of representatives from both the Centre and States.
A concessional 5% GST rate is imposed on milk products such as curd, lassi, butter, and panner that are sold in pre-packaged and labelled form, besides ultra-high-temperature milk. Moreover, a GST of 12% is applicable to butter, ghee, cheese, and condensed milk. These GST rates are collected evenly across States.
Rajyasabha member, Kanimozhi Somu raised a question on the proposal to reduce or revoke GST on milk and milk-based products. The ministry replied that GST Council has not recommended such a proposal.
The Minister further stated that they have not received any proposal from the GST Council on a comprehensive financial package for dairy farmers. Farmers were getting financial assistance from the Department of Animal Husbandry and Dairying under many schemes.
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National Programme for Dairy Development and livestock health and disease control and dairy processing and infrastructure development funds are among these schemes.
