There is no proposal to eliminate the Goods and Services Tax (GST) on milk products as the rates are based on the recommendation of the GST Council, Union Minister of State for Finance, Pankaj Chaudhary, said on Tuesday, August 1, 2023.

Mr. Chaudhary said fresh milk and pasteurised milk are exempt from GST. The rates are prescribed based on the recommendations of the GST Council that comprise representatives from both the Centre and States.

A concessional GST of 5% is levied on milk products like curd, lassi, butter milk and paneer that are sold in pre-packaged and labelled form, apart from ultra-high temperature milk. Moreover, a GST of 12% applies to condensed milk, butter, ghee and cheese. These GST rates are levied uniformly across States.

To a question by Rajya Sabha member Kanimozhi Somu on plans to reduce or eliminate GST on milk and milk products, the Minister said there was no recommendation for such a proposal from the GST Council.

The Minister also said there was no proposal for a comprehensive financial package for dairy farmers. The Department of Animal Husbandry and Dairying was providing financial assistance to farmers under various schemes, including the National Programme for Dairy Development and the livestock health and disease control and dairy processing and infrastructure development funds, to farmers.

Source : The Hindu Aug 02nd 2023