India GST News: The government is considering linking the GST on mango drinks to the amount of raw mango pulp. Let's explore the potential impact of this proposal on prices and consumers.

Drinks with more mango pulp may get GST relief

GST on Mango Drinks: If you enjoy mango juice or mango drinks during the summer, this news is crucial. In the future, the price of mango juice and the GST charged on it may depend on the amount of pulp used. The government is considering a new rule that could provide tax relief to mango drinks that use a higher amount of pulp. The primary purpose of this proposal is to encourage companies to produce better quality products and benefit consumers.

Who will get the benefit of 5% GST?

The government committee has stated that mango drinks containing 22% to 25% or more natural mango pulp will continue to benefit from the current concessional GST rate of 5%. However, products containing pulp below the prescribed limit may be subject to a higher GST. However, the final decision on implementing this proposal will be made only after approval by the government and the GST Council.

Why did this proposal come?

Totapuri mangoes are primarily grown in Karnataka, Andhra Pradesh, and Tamil Nadu. However, this season, Totapuri mango prices plummeted, causing significant losses for farmers. Experts attribute this to slower procurement by processing companies and the rising sales of beverages with less pulp.

How will farmers and customers benefit?

• Companies will be encouraged to use more natural mango in their products.
• Due to this, the demand for Totapuri mango is expected to increase.
• With this, farmers can get better and better prices for their crops than before.
• Customers will get mango drinks that contain more real fruit than before.
• Besides, this is also expected to give a boost to the processed mango industry.

What will be the next step?

• The government will discuss this proposal with the GST Council, FSSAI and the ministries of finance, agriculture, food processing and health.
• After this, tax (GST) structure can be prepared for mango drink.
• The committee has also recommended improving Totapuri mango orchards and encouraging farmers to produce value-added products.