Manish Bandlish Applauds Government's Move to Lower GST on Dairy Items
Responding to the GST Council's decision, Manish Bandlish, Managing Director of Mother Dairy, stated, "We applaud the Union Government's decision to lower GST rates on a broader spectrum of dairy items, including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams."
This initiative will greatly enhance the affordability and availability of value-added dairy products for consumers.
Mother Dairy announced that it will pass the benefits of the reduced GST on various products to its customers.
As one of the prominent dairy companies in the nation, Mother Dairy achieved a turnover of Rs 17,500 crore in the previous financial year.
"This is especially a significant boost for packaged categories, which are becoming increasingly popular in Indian households and are likely to experience stronger demand moving forward," Bandlish added.
Mother Dairy is dedicated to ensuring that consumers benefit from this reform, he affirmed.
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"Reducing the tax rates will promote wider acceptance of packaged, value-added dairy products, reinforce consumer preference for safe and quality options, and allow more families to enjoy nutritious dairy products at better prices," Bandlish stated.
The reduction in GST rates on a variety of dairy products is expected to create improved market opportunities for farmers.
The goods and services tax on ultra-high temperature milk, chena, and paneer has been lowered to zero from five percent, while all Indian breads will now have no tax.
All varieties of dairy milk, apart from UHT milk, were previously exempt from GST. Therefore, UHT milk has been exempted to align with the tax treatment of similar products. While plant-based milk drinks, except for soya milk drinks, were subject to an 18 percent GST, soya milk drinks were taxed at 12 percent. The GST rate on both plant-based milk drinks and soya milk drinks has now been reduced to five percent.
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The new tax rates for all products, with the exception of gutkha, tobacco and tobacco products, and cigarettes, will take effect on September 22 -- the first day of Navratri, she noted.