In the 47th meeting of the GST Council, now the GST rate has been implemented in dairy products like milk and curd. Earlier they were not taxed. Due to this decision the difficulties of the general public have increased.
The country is already facing the brunt of inflation. The income remains the same, but the prices of everything from food items to food are increasing in the country. Now the pockets of the general public are going to loosen once again. Let us tell you that recently, the 47th meeting of the GST Council was held under the chairmanship of Finance Minister Nirmala Sitharaman, in which some food items which were earlier exempted from tax, now it was announced to impose tax on them too.
These include cereals and milk products like pre-packaged, pre-labeled curd, lassi and buttermilk. Now the GST rate will be applicable on these products in place of the existing zero tax . With this step of the government, dairy companies will also increase the prices of their products, for which only the general public will have to bear the brunt.
Till now the tax rate was zero
Acco
rding to research by ICICI Securities, the GST rate on curd and lassi is currently expected to be minus 5%, while till now these substances were kept out of the tax net.
Milk and curd is the only major product for most dairy companies in India, and milk curd contributes to 15 to 25 percent of their total earnings. In which now with the imposition of tax, there will be a huge increase in the prices.
Public will be harmed
The Government of India has already banned single use plastic from the month of July, due to which the use of single use plastic has also been banned in dairy products, its most impact was seen on straws used for beverages.
