No proposal for 0% or 5% GST on all food items across India; Says MOS

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary has stated in response to a question raised in Lok Sabha that No proposal for 0% or 5% GST on all food items across India.

The Minister Shri Manickam Tagore B and Shri Vijayakumar Alias Vijay Vasanth asked the question in Lok Sabha:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government is considering implementing a GST rate of either zero or 5% on all food items across India, if so, the details thereof;

(b) the rationale behind differential GST rates on different food items, and the impact of these rates on consumers and businesses;

(c) the comparative analysis of GST rates on food items in the country with other countries, particularly those with similar socio-economic profiles; and

(d) the steps taken by the Government to mitigate the impact of GST rates on food items on vulnerable sections of society, especially in terms of affordability and accessibility?

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary replied:

(a) and (b): GST rates and exemptions are determined by the GST Council, a constitutional body made up of representatives from the states/UTs and the centre. The GST Council has made no recommendations in this regard that are currently pending implementation.

Fresh and pasteurized milk are completely exempt from GST. Food grains, flour, pulses, curd, lassi, buttermilk, paneer, and other mass-consumption commodities are exempt from GST unless pre-packaged and labelled. When such goods are pre-packaged and labelled, they get a 5% GST reduction.

(c): No such data is available.

(d): Fresh milk and pasteurised milk are fully exempt from GST. Food items of mass consumption like food grains, flour, pulses, curd, lassi, buttermilk, paneer etc., are exempt from GST unless they are pre-packaged and labelled. Such goods when pre-packaged and labelled attract a concessional GST rate of 5%.

Furthermore, more than 80 crore beneficiaries of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) receive free food grains across the country.