MYSURU:The Goods Service Tax (GST) introduced by the Union Government has has helped Karnataka Milk Federation push its sale of Nandini Ghee and other byproducts across the country.
KMF, that is known for Nandini milk, ghee and other products has registered a 30% increase in sales outside Karnataka. The introduction of 12% GST on ghee has triggered good sales in Jammu and Kashmir, Delhi, Kolkata, Chennai and other cities. Earlier, the Karnataka government had imposed a 14% sales tax on ghee.Nandini that is second largest milk brand in the country after Amul. It is now trying to improve its sales and extend its market in other parts of the country.
Earlier, Nandini was selling 1,500 tons of ghee and sales have crossed 1,800 tons. Post GST, sales of butter has doubled from 200 tons to 400 tons and there is a spike in sale of milk powder too.
The sales of Goodlife tetrapack milk has also increased. The armed forces have placed an order of 1 crore litres of Goodlife over the year and the requirement is expected to increase further.
KMF Director (marketing) Mruthunjaya Kulkarani said earlier it was difficult to push sales of ghee as the tax varied from state to state but now the uniform tax slab has created a level playing field. “We are rigorously marketing our products across the country and expanding our footprint. Our profits are likely to go up by 5%,” he added.
Commercial Tax DC D P Prakash said “There is myth that GST has put additional burden on consumers as they are comparing GST with sales tax. Many are unaware that there were 16 more tax components along with sales tax on each product.