North 24 Parganas, Sep 24 The Central government has reduced the Goods and Services Tax (GST) on all milk products under its latest tax reform. However, prices of milk products sold by Bangla Dairy in parts of West Bengal, including North 24 Parganas, have not yet come down and consumers continue to purchase these products at old rates, despite dealers buying them under the new GST slab.
Speaking to IANS, Biplob Majumdar, a Bangla Dairy dealer from Sodepur in North 24 Parganas district, said: "We are purchasing goods at the new GST slab, but it has had no impact on the common people. The company has reduced the GST rate, but the sales rate remains unchanged. Since GST is not levied on sales at our end, we don’t apply it either. The prices haven’t dropped in any way. I haven’t seen any change. The new GST slab has only affected the prices we pay while buying, not what consumers pay. I’m referring specifically to milk products."
The government’s new GST framework - referred to as “GST 2.0" - came into effect on September 22, marking the biggest reform in indirect taxation since the implementation of GST in 2017. The previous four tax slabs (5 per cent, 12 per cent, 18 per cent, and 28 per cent) have been simplified into two: 5 per cent and 18 per cent.
The reform is intended to simplify the tax system and boost consumer spending. Following the announcement, many FMCG companies released updated price lists via distributors, websites, and media advertisements, reflecting reductions in the prices of daily-use items and packaged foods.
These sweeping changes are part of Prime Minister Narendra Modi’s broader strategy to overhaul India’s tax regime and stimulate household consumption, which accounts for over half of the country's GDP.
The timing of the tax cut coincides with the beginning of the festive season, a period when Indian consumers traditionally increase spending on items ranging from clothing to electronics.
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