Reduce GST on ghee to curb adulteration: IDAurges GOI
Amid ongoing crackdowns on fake ghee factories, India’s dairy sector advocates for a GST reduction on ghee, currently taxed at 12%. Industry representatives argue that ghee, renowned for its health benefits since ancient times, faces a higher tax than chemically hydrogenated imported palm oil, which attracts only 5% GST. The sector calls for equity in tax treatment to promote genuine dairy products and discourage illicit activities in the market.
Vadodara: In the wake of the fake ghee making factories that are busted every year, India’s dairy sector has demanded a reduction in goods and services tax (GST) on ghee which currently attracts 12% tax.
Representations from dairy sector players to the Central govt state that ironically imported palm oil, which is chemically hydrogenated, attracts just 5% GST compared to ghee which since ancient times has been known for its health benefits.
