GST cuts for cooperatives, dairy and farm inputs
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Asked by UPSCPrelims 2018, 20172 PYQs
UPSC has already asked about this. Read the story with these questions in mind.
What happened
- After the GST changes, milk and paneer carry no GST; butter and ghee are at 5% [PIB].
- Tractors (below 1800 cc) and parts, ammonia, sulphuric and nitric acid for fertilisers, and twelve bio-pesticides moved to 5% [PIB].
- Commercial trucks and delivery vans move to 18% [PIB].
Background
- The Ministry of Cooperation says the cuts help dairy and food processing cooperatives [PIB].
Why it matters
- Lower input taxes help farm costs; cooperatives gain on processed dairy.
How to use this in Mains
- As per PIB (2025-09-06): after the GST changes, milk and paneer carry no GST; butter and ghee are at 5%.
- Lower input taxes help farm costs; cooperatives gain on processed dairy.
Quotable data pointTractors (below 1800 cc) and parts, ammonia, sulphuric and nitric acid for fertilisers, and twelve bio-pesticides moved to 5%.
PIB: GST reductions for cooperatives and farmers, 6 Sep 2025
Exam angle
UPSC
Prelims: GST rates on farm items.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
GST on butter and ghee after the reform
Answer (b) & explanation
PIB.
Practice · UPSC
GST on twelve bio-pesticides cut to
Answer (b) & explanation
PIB.
Go deeper
ExplainerSelf-Reliance in Pulses and Edible Oils: Mission for Aatmanirbharta in Pulses (2025-31), National Mission on Edible Oils (Oilseeds and Oil Palm), Import Dependence and the Way Forward (UPSC Notes + PYQs)ExplainerPM Dhan-Dhaanya Krishi Yojana: Convergence of 36 Schemes in 100 Low-Productivity Districts, Selection Criteria, Monitoring and the Aspirational Districts Model (UPSC Notes + PYQs)
Official source: PIB: GST reductions for cooperatives and farmers, 6 Sep 2025
facts from cited sources only; faculty review pending