GST Rate Cuts: A Boost for Farmers and Dairy Consumers
The GST Council has reduced tax rates on various dairy products, fertilisers, and agricultural equipment. This move aims to provide relief to farmers and consumers, especially before the festive season. Key products like UHT milk and paneer are now tax-free, impacting agriculture and dairy sectors positively.
- Country:
- India
In a strategic move, the Goods and Services Tax Council has decided to lower tax rates on essential items like dairy products, fertilisers, and agricultural machinery. The decision was made during the 56th council meeting chaired by Union Finance Minister Nirmala Sitharaman, providing timely relief to farmers and consumers.
The tax on Ultra High Temperature (UHT) milk and paneer has been slashed to zero from the previous 5 percent, while GST on other dairy items such as butter and cheese has been reduced to 5 percent from 12 percent. This reduction is expected to make these staple goods more affordable to consumers, particularly in rural areas.
Agricultural machinery and biopesticides have also seen substantial tax cuts, signaling economic support for farmers. The council's decision will take effect from September 22, aiming for increased economic stability and growth in India's vital agriculture and dairy sectors.
(With inputs from agencies.)
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