India announced comprehensive GST reforms targeting food processing and logistics sectors on Monday. The government eliminated taxes on essential items such as UHT milk, paneer, and traditional breads like paratha and roti. Packaged foods, chocolates, sauces, and beverages received reduced rates of five percent.
The reforms extended beyond food items to support infrastructure. Packaging materials like crates and paper face five percent taxation while commercial trucks saw rates drop from 28 percent to 18 percent. These changes aim to reduce freight costs and strengthen supply chains across the country.
Officials simplified the tax framework by placing most food products under five percent or zero tax categories. This restructuring eliminates classification disputes that previously created uncertainty for businesses and consumers. The National Food Security Act continues providing subsidized grains to 75 percent of rural and 50 percent of urban populations. Over 81 crore beneficiaries receive free food grains through extended programs until 2029.
The reforms extended beyond food items to support infrastructure. Packaging materials like crates and paper face five percent taxation while commercial trucks saw rates drop from 28 percent to 18 percent. These changes aim to reduce freight costs and strengthen supply chains across the country.
Officials simplified the tax framework by placing most food products under five percent or zero tax categories. This restructuring eliminates classification disputes that previously created uncertainty for businesses and consumers. The National Food Security Act continues providing subsidized grains to 75 percent of rural and 50 percent of urban populations. Over 81 crore beneficiaries receive free food grains through extended programs until 2029.
