CHENNAI: Union Minister of State for Finance Pankaj Chaudhary informed the Parliament that there is no plan to reduce or eliminate GST on milk and milk products. His response came following a question raised by the DMK’s Rajya Sabha MP Kanimozhi NVN Somu whether the government has any plans to reduce or eliminate GST on milk and milk products considering their value in ensuring nutritional security.
Responding to her question, Chaudhary said fresh milk and pasteurised milk are fully exempted from GST.
Further, milk products like curd, lassi, buttermilk and paneer are also exempted from GST if sold in forms other than those pre-packaged and labelled. The Minister further added a concessional GST of 5% applies to curd, lassi, buttermilk and paneer when sold in pre-packaged and labelled form, and Ultra High Temperature (UHT) Milk.
Further, a GST of 12% applies to condensed milk, butter, ghee and cheese. GST exemptions and rates apply uniformly across states. Highlighting the reduction of GST on milk products, the union minister said there is no recommendation from the GST Council in this regard.