The decision of the GST Council in its 47th Meeting held last week in Chandigarh to impose 5% GST on dairy items like “pre- packed, pre-labelled curd, lassi and butter milk” and to increase GST on dairy machinery and milking machines from 12% to 18% has drawn criticism from farmers’ organisations and milk cooperatives. Various cooperatives are waiting for the notification of the Centre to take the next step, while farmers fear that the decision will result in increase in the price of the by-products.
R.S. Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) (Amul) said they are waiting for the notification. “We do not have any clarity at the moment. We have seen newspaper reports that GST will be levied on curd and buttermilk. We are waiting for the notification,” he said, adding that the prices of both the products likely to rise if GST is imposed on them.
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