Lok Sabha Question No. 111 (STARRED), answered on 2022-07-25
Subject: GST on Milk and Milk Products
Ministry: FINANCE
Asked by: Dean Kuriakose

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE *****

## LOK SABHA

## STARRED QUESTION NO. *111

## TO BE ANSWERED ON MONDAY JULY 25TH 2022/ SRAVANA 3, 1944 (SAKA) GST ON MILK AND MILK PRODUCTS

## *111.  ADV. DEAN KURIAKOSE

Will the Minister of Finance be pleased to state:

- (a)  the  details  of  Goods  and  Services  Tax  (GST)  rates  levied  on  milk  and  milk products for domestic consumption, State-wise;
- (b) whether the Government has any plans to reduce or eliminate GST on milk and milk products, considering their value in ensuring nutritional security;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government is likely to introduce a comprehensive financial package
- to help the dairy farmers; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF FINANCE SHRIMATI NIRMALA SITHARAMAN

- (a) to (e): A statement is placed on the Table of the House .

*****

STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 111 RAISED BY ADV. DEAN KURIAKOSE FOR 25 TH  JULY, 2022, ON GST ON MILK AND MILK PRODUCTS

(a) Fresh milk and pasteurised milk are fully exempt from GST. Further, milk products like curd, lassi, butter milk and paneer are also exempt from GST if sold in form other than those pre-packaged  and  labelled.  A  nominal  GST  of  5%  applies  to  curd,  lassi,  butter  milk  and paneer, when sold in pre-packaged and labelled form, and Ultra High Temperature (UHT) Milk.  Further,  a  GST  of  12%  applies  to  condensed  milk,  butter,  ghee  and  cheese.  GST exemptions and rates apply uniformly across states.

(b) and (c) GST rates are prescribed on the recommendation of the GST Council, which is a constitutional body comprising of representatives from both the Centre and the States/UTs.

(d)  and  (e) The  Department  of  Animal  Husbandry  &  Dairying,  Government  of  India,  has been implementing different schemes/fund, wherein inter alia provision(s) have been made for  providing  financial  assistance  to  dairy  cooperatives,  milk  producer  companies,  etc., primarily  for  creating  or  strengthening  of  the  infrastructure  for  production  of  quality  milk, procurement, processing and marketing of milk & milk products; and providing soft working capital loans. The same are elaborated below:

- (i) National Programme for Dairy Development (NPDD) : NPDD scheme is being implemented across the country since Feb-2014 with an objective of creating/strengthening of infrastructure for production of quality milk, procurement, processing  and  marketing  of  milk  &  milk  products  by  dairy  cooperatives,  milk producer companies across the country. The scheme has been restructured/ realigned in July 2021 for implementation during 2021-22 to 2025-26.
- (ii) Dairy Processing and Infrastructure Development Fund (DIDF): DIDF was launched  in  December  2017  with  the  objective  of  creation/  strengthening  of  Milk Processing,  Value  addition  &  chilling  facilities  for  Dairy  Co-operative,  Multi  State Dairy Cooperatives, Milk Producer Companies (MPC), National Dairy Development Board's  (NDDBs)  subsidiaries,  Self  Help  Groups  (SHGs)  and  Farmer  Producer Organizations  (FPOs)  registered  under  State  Cooperative  and  Companies  Act  with total outlay of Rs. 11,184 Crore (loan component of Rs. 8,004 Crore). DIDF is to be implemented from 2018-19 to 2022-23 and repayment period up to 2030-31 with spill over to first quarter of the FY 2031-32.
- (iii) Supporting Dairy Cooperatives and  Farmer Producer Organizations engaged in dairy activities (SDCFPO): The central sector scheme Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO) is implemented as a part of umbrella Scheme 'Infrastructure Development Fund' from 2021-22 to 2025-26 with an outlay of Rs 500 Cr. The scheme is being implemented through National Dairy Development Board (NDDB). Main objective of the  scheme  is  to  assist  the  cooperative  societies  and  farmer  producer  organizations engaged  in  dairy  activities  by  providing  soft  working  capital  loan  to  tide  over  the crisis on account of severely adverse market conditions or natural calamities.