Dairy products are part of every indian household, cutting across income levels, regions, and cultures. From paneer in the North to curd in the South, ghee in festive sweets to ice cream for children — these are not luxuries but everyday essentials. Yet, the current GST structure on dairy is confusing, uneven, and often unfair to consumers. Here’s why the Modi government should step in and simplify it — ideally to a flat 5% rate.
1. Paneer at 5% — But butter and cheese at 12%?
Paneer, a staple protein for millions of vegetarians, is rightly taxed at 5%. But butter and cheese — equally essential dairy products — attract 12% GST, creating unnecessary disparity.
2. Branded Curd and lassi at 5% — But ice cream at 18%
Curd and lassi are taxed at 5%, while ice cream, often made from the same milk and cream, is burdened with a whopping 18% GST. This high rate makes it a luxury product, even though ice cream is no longer just an occasional treat but a widely consumed food item.
3. ghee at 12% Hurts Tradition
In indian culture, ghee is more than food — it’s tradition, Ayurveda, and a festival. By taxing ghee at 12%, the government penalizes cultural consumption and makes an essential product more expensive for households.
4. Condensed Milk at 18% is Unjustified
Condensed milk, often used in sweets and desserts, attracts 18% GST, pushing up the cost of indian mithai. For a country where sweets are part of every celebration, this feels excessive.
5. Milk is Exempt — But Processed Items Are Penalized
Pre-packaged milk is exempt from GST. Yet, as soon as that milk is turned into paneer, butter, ghee, or ice cream, the taxes jump. This discourages value addition in India’s dairy sector, which employs millions of farmers and small businesses.
6. Complexity Hurts Both Consumers and Businesses
Multiple GST slabs create confusion at billing counters, disputes in classification, and headaches for small dairies. A simplified flat 5% GST across all dairy products would help both consumers and producers.
⚠️ Final Word
The Modi government has simplified GST in many sectors, but dairy still remains a puzzle of 5%, 12%, and 18% slabs. For a country where dairy is nutrition, culture, and livelihood, the government should urgently bring all dairy items under a simple, uniform 5% GST rate.
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