BENGALURU: Come Monday, September 22, the cost of dairy products, barring milk and curd, will come down with the reduction in GST, as announced by the Union government.
Karnataka Milk Federation (KMF) officials met on Friday to discuss the impact of tax revision and how to pass on the tax cut benefits to consumers. KMF Managing Director B Shivaswamy told The New Indian Express that the 12% GST on items like ghee, cheese and savouries will be reduced to 5% and ice creams, muffins, cakes, cookies and chocolates that earlier had 18% GST will now attract 5%.
He said there is no revision in the rates of milk and curd. While no GST is levied on milk, curd will continue to have 5% GST. This will not impact farmers as procurement charges will remain unchanged.
“The milk prices were earlier increased by Rs 4 per litre. There will be no revision in the near future,” he added.
The rate of ultra high temperature milk (packaged in pouches like Goodlife), however, has been reduced as GST will come down from 5% to zero. But prices of products under the Bounce brand, launched recently by Nandini, will increase as the GST has been hiked from 28% to 40% as they fall under the luxury items category, a KMF official explained. “We had a detailed meeting on the rate revision.
There was some confusion pertaining to curds, which attracts 5% GST. The matter was also discussed with the Union ministry before deciding not to change the cost of curds,” the official added.