Tax Implications on Paneer, Ghee, Cheese, and Butter: Will Mother Dairy Transmit Tax Savings to Customers following Rate Reduction?
The Indian GST Council has announced new GST rates for several dairy and plant-based milk products, effective from August 18, 2017.
Previously, plant-based milk drinks, excluding soya milk drink, attracted a GST rate of 18%. However, the new rates have seen a significant decrease, with both plant-based milk drinks and soya milk drinks now being taxed at 5%. This change aims to make these alternatives more affordable for consumers.
Soya milk drink, which previously was taxed at 12%, now has an even lower GST rate, further encouraging its consumption.
UHT milk, a type of long-life milk, has been exempted from GST, providing the same tax treatment to similar goods. This move aligns UHT milk with dairy milk, for which the GST was already exempt, other than UHT milk.
The new GST rates for Paneer, Ghee, Cheese, and Butter were also set by the GST Council, but the specific rates were not disclosed in the information provided.
It is worth noting that the GST treatment for UHT milk is now the same as that for dairy milk, although no new information was provided about this change.
Mother Dairy, a leading dairy cooperative in India, has welcomed the revised GST rates, stating that it will help in making dairy and plant-based milk products more affordable for consumers.
Manish Bandlish, a consumer, expressed his satisfaction with the changes, saying, "I have been looking forward to this for a while. The lower GST rates on plant-based milk drinks and soya milk drinks will make them more affordable, and I can now consider them as viable alternatives to dairy products."
The revised GST rates are expected to encourage the consumption of plant-based milk drinks and soya milk drinks, providing consumers with more choices and promoting a healthier lifestyle.
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