New Delhi, Sep 15 || The GST reforms in the food processing and logistics sectors will ensure affordability for consumers, predictability for industry players and competitiveness for India’s economy, the government said on Monday.
By reducing rates on essential food items, packaging materials, and transport vehicles, the government has not only simplified taxation but also laid a strong foundation for sustainable growth in food processing, logistics, and allied industries.
Food items like ultra-high temperature (UHT) milk, paneer/chena, breads like paratha/parotta, khakhra, chapati/roti and pizza bread have been exempted from GST. The indirect taxes on packaged food/snacks, chocolates, sauces, juices, coffee, etc. have been reduced to 5 per cent, boosting demand and industry growth.
Packaging materials like crates and paper are now taxed at 5 per cent, lowering logistics and production costs. GST on trucks and goods vehicles have been cut from 28 per cent to 18 per cent, reducing freight rates and strengthening supply chains, said the government.
The government has aimed to simplify taxation in the food processing industry by bringing most food items under the 5 per cent or nil tax slab.