The Ministry of Food Processing Industries (MoFPI) is actively engaging with the Ministry of Finance to push for rationalisation of Goods and Services Tax (GST) rates on key items linked to the food processing sector, Union Minister Chirag Paswan said on Tuesday.
Speaking at the curtain raiser event for World Food India 2025 in New Delhi, Paswan stressed the urgent need to review and overhaul GST rates applicable to various food and packaged food items.
“We’re in continuous dialogue with the Finance Ministry and have forwarded the concerns of food processing industry stakeholders.
There is a pressing need to re-examine the GST structure for several key items,” Paswan told Moneycontrol.
While refraining from naming specific products, Paswan stressed the necessity for a "massive overhaul" in GST classifications.
“The GST Council will take the final decision, but from our side, we believe rationalisation is essential,” he said.
According to sources, the GST Council is expected to convene following the conclusion of the Parliament’s monsoon session, where a potential rationalisation of GST rates for around 150 items, including packaged food products may be taken up for discussion.
On the regulatory front, the minister empasized the need to upgrade and align India’s food safety regulations with international benchmarks.
He pointed out that inconsistencies in domestic standards have led to the rejection of Indian food products in certain global markets.
“There have been instances where popular Indian products, like instant noodles have faced bans in European countries due to regulatory issues. Our goal is to ensure that Indian food safety standards are accepted globally,” Paswan said.
Paswan also asked the Food Safety and Standards Authority of India (FSSAI) to ensure only safe food reaches the Indian consumer. “The safety of what ends up on the consumer’s plate cannot be compromised,” he said.
Paswan also pointed to the untapped potential of India’s food processing sector, noting that currently less than 10 per cent of agricultural produce is processed. “The food processing industry not only boosts value addition but also holds immense potential to increase farmers’ incomes,” he said.