GST on milk, paneer: In the ongoing 56th GST meeting, which began yesterday, 3 September, in the capital, has come up with a revised tax has been proposed
on several items across different categories. The goods and services tax reduced rate will be effective from the 22nd of this month. Finance Minister Nirmala Sitharaman said that GST on common man and middle-class items has been reduced from 18 per cent or 12 per cent to 5 per cent. Now the question is, does it include reduced GST on milk? Well, UHT (Ultra High Temperature) milk has been exempted. Does the exemption to UHT milk also cover plant-based milk? Goods and service tax on ultra-high temperature milk, chena, and paneer has been reduced to zero from 5 per cent, while all Indian breads will now see a nil rate. All dairy milk, other than UHT milk, was already exempt from GST. Hence, UHT milk has been exempted to provide the same tax treatment to similar goods. Plant-based milk drinks, except soya milk drink, attracted 18 per cent GST while soya milk drink attracted 12 per cent GST. The goods and services tax rate on plant-based milk drinks and soya milk drinks has now been reduced to 5 per cent. Also read: GST on online money gaming, lottery, casino: How much will you pay?
FAQs: GST Council meeting outcome
1. When will the changes in GST rates come into force?
As per recommendations of the GST Council in its 56th meeting, the changes in GST rates on services and goods other than cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi will be effective from 22nd September, 2025.
2. Is there any change in the threshold of registration required for goods under the CGST Act, 2017?
No, there is no change in the threshold of registration required for goods under the CGST Act, 2017.
3. Which notification provides for the revised rates?
The changes in GST rates will be notified in the rate notification. The notification would be placed on the CBIC website.
