GST Council Meeting Outcome: The 56th meeting of the GST Council has announced the much anticipated big-bang reforms in GST tax structure.
The GST Council has accepted Group of Minister’s (GoM) proposal to retain two slabs — 5 percent and 18 percent.
Chena or paneer, pre-packaged and labelled which was earlier taxed at 5 percent GST will now be fetch Zero tax. Meanwhile, the GST on Cheese has been brought down from 12 percent to 5 percent.
Before the GST 2.0 announcements were made, fresh loose paneer sold in the market already had zero GST. It was only pre-packaged paneer that had attracted 5 percent GST.
Experts opine that the government has decided to do away with GST rates in paneer to encourage and promote Indian cottage cheese.
Till date, As per Indian GST rules, a four-slab GST system was being followed — 5 percent, 12 percent, 18 percent, and 28 percent — along with an additional cess on sin and luxury goods.
The government has lowered taxes on some food items from 5 percent To Nil on a host of products like Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, chapathi or roti.
GST on key dairy items like butter, ghee, and cheese has decreased from 12 per cent to 5 per cent. Prices for condensed milk and various packaged foods, including jams, sauces, pickles, and fruit juices, will come down.
Dry fruits and nuts, including almonds, cashews, pistachios, and dates, will now be taxed at 5 percent instead of 12 percent. Biscuits, cakes, chocolates, cornflakes, soups, and ice cream will also see a tax reduction to 5 percent from 18 percent.
