On Saturday, June 22, Goods and Services Tax (GST) Council meeting took place where several key decisions were taken by the council. Several key decisions were taken at the Council meeting to provide relief to taxpayers and ease the compliance burden on businesspersons. Among the decisions taken was the decision to reduce GST on milk cans from 18% to 12% and make it uniform.
Irrespective of the fact whether milk can is made out of steel, iron or aluminium, it will now attract a uniform GST rate of 12% instead of 18% earlier.
Shortly after the decision was announced, a social media narrative started to subtly push the agenda that a new 12% tax has been introduced on milk cans by Modi government.
This reduction of GST on milk cans is being projected as if it is a new tax introduced by Modi 3.0, while hiding the fact that there is an actual reduction on GST in this case. Several other Modi government detractors also shared this news of 12% GST on milk cans without adding the context that it has been reduced from 18%, and that now it has been made uniform for all types of cans.
Some alert X users did point it out that there has actually been a reduction in GST rates on the milk cans.
Notably, this GST of 12% is also just on milk cans, not on the milk that we all buy. However, the way fake news and propaganda travels, don’t be surprised if you see videos on the channels of YouTubers that Modi government is now taxing milk at 12%, and subsequently make its way to Rahul Gandhi press conferences.
Interestingly, GST rates are decided by the GST Council which involves Finance Ministers of all states, including the states ruled by the opposition, so blaming Modi government alone for tax rates doesn’t make sense in the slightest. However, in this case, it makes even less sense (if that is possible), as GST Council actually reduced tax rates on the milk cans.