Karnataka Farmers Are Upset About the GST on Milk Products

MYSURU: Karnataka farmers have vehemently objected to the GST Council's decision to tax dairy items including lassi, curd, paneer, and buttermilk as well as farm machinery. Kurubur Shanthakumar, Head of the State Sugar Cane Growers Association, stated on Saturday that "the government has targeted the agricultural community and milk producers" despite not hiking the tax on gambling and racing.

He claimed that in addition to taxing irrigation pumps, sprayers, and other agricultural equipment, the Union Government has broken its promise to farmers to implement the Swaminathan Committee report. Farmers are already struggling due to the collapse of produce prices, crop losses, and rising production costs.

We have made the decision to file a protest with Union Minister Nirmala Seetharaman, and we will send a letter to Chief Minister Basavaraj Bommai pleading with him to exempt Nandini goods and agricultural machinery from GST, he added. He also said that because the cost of production has increased, sugarcane growers would protest on Monday and Tuesday in all districts and taluks to demand that the government set a minimum price for sugarcane.

The KMF (Karnataka Milk Federation), the largest producer of dairy and dairy products in the State, plans to raise the price of curd by 2.2 rupees per litre, lassi by 3.75 rupees per litre, and buttermilk by 3 rupees per litre, respectively. Paneer will cost Rs15 more per kilogramme.

A message to the government is anticipated to contain a formal request for the decision to be reversed.

The federation anticipates paying around 22 lakh per day in GST on its entire sales of curd, lassi, buttermilk, and paneer, according to preliminary calculations made after the rates were revealed on Wednesday. The KMF sells daily roughly 5,000 kg of paneer, 15,000 litres of buttermilk, 15,000 litres of lassi, and nearly nine lakh litres of curd. For a clearer picture, the federation is expecting a notification.

How is the GST on Milk Products Impacting Customers?

According to KMF sources, the customer will inevitably bear the expense. Sources also noted that the KMF had previously filed an appeal against flavoured milk being subject to the GST system on the grounds that it was a milk product and was sold by a cooperative. "We are paying the advance tax while the matter is still being considered by the proper body. The issue has not yet been resolved, and the cooperative tag has not been effective.

The issue is still being reviewed, and the federation may file an appeal against the revocation of the exemption, according to KMF Managing Director B.C. Sateesh. KMF Chairman Balachandra Jarkiholi will be consulted before a decision was made, according to the statement.