JKB Financial Services Ltd.

As on : 04-Sep-2025

Economy - Reports
04-Sep-2025 09:05

GST reduced to 5% or NIL for food and agri products

The GST council has reduced GST from 12% to 5% on agricultural goods, such as tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, harvesting or threshing machinery, including straw or fodder balers, grass or hay mowers, composting machines etc.

The council announced correction of inverted duty structure in fertilizer sector by reducing GST from 18% to 5% on Sulphuric acid, Nitric acid and Ammonia.

The GST on condensed milk, cheese, butter and other fats (i.e. ghee, butter oil, etc.) and oils derived from milk; dairy spread dropped to 5%.

The GST on Ultra-High Temperature (UHT) milk, Prepackaged and labelled chena or paneer has been dropped from 5% to NIL. All the Indian Breads will see NIL rates (Chapati or roti, paratha, parotta, etc).

The council has announced reduction of GST from 12% OR 18% to 5% on almost all of the food items such as packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, Butter, Ghee, etc. Refined sugar, syrups, toffees, and candy will now be taxed at 5%.

Other packaged foods such as vegetable oilds, edible spreads, meat, fish products, and malt-extract-based packaged foods reduced to 5% rate.

Malt, starches, pasta, cornflakes, biscuits, chocolates, and cocoa products have been cut to 5%. Almonds, pistachios, hazelnuts, cashews, and dates reduced from 12% to 5% GST.

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