Dairy is perhaps the only industry that is able to pay to the milk producer about 70% of what is charged from the consumer. No other food processing industry in India is able to meet such high expectations of the farmers. It is apprehended that high GST would incite the industry to reduce the milk prices paid to the milk producer. High rate of GST might also increase the consumer prices of dairy products substantially. It is well known that milk production in India has been consistently growing at 4-4.5% annually. It is probable that a softer view will be taken while imposing GST regime on the dairy industry due to the government’s priority of a farmer-centric approach and enhancing rural prosperity. GST is being introduced to create a common market across states, not only to avoid enfeebled effect of indirect tax but also to improve tax compliance. GST will lead a more transparent and neutral manner to monitor and raise revenue. Substantial reduction of burden of compliance for companies of different taxes, their returns, different government authorities and offices to deal with which is parallel to the government’s objective of improving ease of doing business in India.

1. Rate of GST on Dairy Products
Sunil Meena
M. Tech. (Dairy Technology)
Sunildt410@gmail.com

2. No GST Tax Products
• Fresh milk and pasteurised milk, including separated milk, milk and cream, not
concentrated nor containing added sugar or other Sweetening matter, Excluding
Ultra High Temperature (UHT)
• Curd
• Lassi
• Butter milk
• Channa or Paneer , other than put up in unit containers and bearing a Registered
brand name.
• Natural honey, other than put up in unit container and bearing a Registered brand
name.

3. • Ultra High Temperature (UHT) milk
• Milk and cream, concentrated or containing added sugar or other sweetening
matter including skimmed milk powder, milk food for babies, Excluding
condensed milk.
• Cream, yogurt, kephir and other fermented or acidified milk and cream, whether
or not concentrated or containing added sugar or other sweetening matter or
flavoured or containing added fruit, nuts or cocoa
• Whey, whether or not concentrated or containing added sugar or other sweetening
matter; products consisting of natural milk constituents, whether or not containing
added sugar or other sweetening matter, not elsewhere specified or included.
5 % GST Rate Product

4. • Channa or paneer put up in unit container and bearing a registered
brand name
• Edible products of animal origin, not elsewhere specified or included.
5 % GST Rate Product

5. • Butter and other fats (ghee, butter oil, etc.) and oils derived from milk; dairy spreads
• Cheese
• Condensed milk
• Animal fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified,
re-esterified or elaidinised,whether or not refined, but not further prepared.
• Beverages containing milk
12 % GST Rate Product

6. • Aseptic packaging paper
• Boxes, pouches, wallets and writing compendiums, of paper or
paperboard, containing an assortment of paper stationery.
• Cartons, boxes and cases of corrugated paper or paper board
• Milking machines and dairy machinery
12 % GST Rate Product

7. • Packing cases, boxes, crates, drums and similar packings, of wood;
cable-drums of wood; pallets, box pallets and other load boards, of
wood; pallet collars of wood
• Preparations suitable for infants or young children, put up for retail
sale
• Ice cream and other edible ice, whether or not containing cocoa
• Articles for the conveyance or packing of goods, of plastics; stoppers,
lids, caps and other closures, of plastics
12 % GST Rate Product

8. • Cocoa butter, fat and oil
• Chocolates and other food preparations containing cocoa
28 % GST Rate Product

9. THANK YOU