Lok Sabha: Fresh Milk, Pasteurised Milk Fully Exempted From GST, Clarifies Nirmala Sitharaman

 - Sakshi Post

NEW DELHI: The Central government on Monday clarified that fresh milk and pasteurised milk are fully exempted from Goods and Service Tax (GST). In a written reply to a question posed in the Lok Sabha on the sixth day of the Monsoon Parliament sessions, Finance Minister Nirmala Sitharaman said a nominal GST of 5 percent applies to curd, lassi, buttermilk, and paneer when sold in pre-packaged and labelled form, and Ultra High-Temperature Milk.

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. A GST of 12 percent applies to condensed milk, butter, ghee, and cheese. GST exemptions and rates apply uniformly across States.

She said GST rates are prescribed on the recommendation of the GST Council, which is a constitutional body comprising of representatives from both Centre and the States and Union Territories. 

The GST Council in its 47th meeting had unanimously decided to go for a rate hike on several daily essential items which was implemented from July 18. The prices of daily essential items like curd, lassi, rice and others have been hiked with added GST. Pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi, and butter milk" will attract a GST at a rate of 5 percent from July 18, the GST Council said in a press release following its meeting in late June.

“Prices will go up on daily essentials for end-consumer who cannot avail input tax credit benefits. These include pre-packaged or labeled buttermilk, curd, and paneer, earlier exempted, and will now attract 5 percent GST

Also Read: GST Hike: These Essential Commodities Will Become Dearer

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