


GRB Dairy Foods Welcomes GST Reform


🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source



GRB Dairy Foods Welcomes Recent GST Reforms, Citing Reduced Burdens and Greater Market Competitiveness
The dairy giant GRB Dairy Foods has issued a statement celebrating the latest changes to India’s Goods and Services Tax (GST) framework. In a press release shared with The Print on June 5 2024, the company praised the government’s decision to lower tax rates on certain dairy products, streamline compliance procedures for small and medium enterprises, and expand the availability of input‑tax credits. For a sector that supplies a wide swath of the country’s households with staples such as milk, ghee, butter, and cheese, the reforms are expected to translate into lower costs and a smoother supply chain.
A Brief Overview of GST and the Dairy Industry
Since GST’s nationwide rollout on 1 July 2017, the dairy industry has grappled with complex tax structures and frequent changes in rates. Dairy processors must register for GST, file monthly returns, and, for each state, maintain separate tax accounts. Input‑tax credit (ITC) rules have further complicated matters, especially when dairy farms and small‑scale processors buy supplies from multiple vendors. For companies like GRB, whose production footprint stretches across several states, the administrative overhead has been significant.
The government’s recent reforms aim to address these pain points. Key among them is the reduction of GST rates for a handful of high‑volume dairy items from 12 % to 5 %, a move that the dairy sector has lobbied for since GST’s inception. In addition, the Ministry of Finance announced simplified filing norms for micro‑enterprises and a more flexible schedule for ITC settlement, intending to cut compliance time by up to 40 % and improve cash‑flow for smaller players.
What GRB Dairy Foods is Celebrating
In its release, GRB’s Managing Director, Asha Patel, highlighted the tangible advantages the new tax regime offers. “We welcome the 5 % rate for powdered milk and cheese, which directly lowers the cost of production for our most popular products,” Patel said. She added that the simplified filing process would free up valuable managerial time, allowing GRB to focus on product innovation and farmer support initiatives.
Patel also praised the expanded ITC window, noting that it will allow the company to settle tax credits in a more timely fashion. “Previously, we had to wait until the end of the financial year to claim ITC for certain inputs,” she explained. “With the new timelines, we can now offset tax liabilities on a quarterly basis, improving our working capital.”
Beyond the immediate financial implications, GRB underscored the broader ecosystem benefits. By lowering the tax burden on dairy goods, the reforms should help maintain affordable prices for consumers, particularly in rural markets where low‑cost milk and ghee remain essential staples.
Industry Context and Wider Implications
India’s dairy sector is one of the world’s largest, with over 14 million registered dairy farms and a combined output of more than 90 million tonnes of milk annually. The industry supports millions of livelihoods—from farmers to processors, distributors, and retailers. Consequently, the GST structure has far-reaching effects on the economy.
The new reforms are expected to streamline the entire value chain. For instance, the reduction in GST rates on powdered milk will lower the cost for both processors and distributors, potentially encouraging greater export competitiveness. Similarly, simplified filing will help smaller processors avoid costly third‑party compliance services, thereby preserving margins and fostering innovation.
Analysts say that the changes could trigger a modest surge in industry investment. “A lower tax rate on dairy products reduces the overall cost of doing business, thereby making it more attractive for new entrants and investors,” noted Rajesh Khanna, a senior economist at the Centre for Economics and Development. “It also improves the sector’s ability to meet the growing demand for dairy in urban India.”
GRB Dairy Foods’ Next Steps
In addition to welcoming the reforms, GRB has announced a swift rollout plan. The company will conduct a comprehensive audit of its current GST filings and ITC balances to identify any gaps. It will then align its accounting systems with the new filing timelines, training staff on the updated forms and compliance protocols. The firm will also update its pricing models to reflect the new 5 % GST on powdered milk and certain cheese variants, ensuring transparency for both retailers and consumers.
Moreover, GRB’s sustainability division has hinted at launching a “Green GST” initiative, tying the lower tax rate to eco‑friendly packaging and waste‑reduction practices. “We see this as an opportunity to reinforce our commitment to responsible dairy production,” Patel said.
A Milestone for the Dairy Sector
The announcement from GRB Dairy Foods marks a notable milestone in India’s journey toward a more business‑friendly tax environment. By lowering rates on high‑volume dairy products, simplifying compliance, and expanding ITC availability, the government has delivered a package that aligns with the sector’s long‑standing demands. For GRB and its peers, the reforms promise reduced operational costs, better cash flow, and an environment conducive to growth and innovation.
As the industry watches, the true measure of success will lie in how quickly the reforms translate into measurable benefits on the ground—from fresher, more affordable dairy goods for consumers to healthier financials for processors and farmers alike. For now, GRB Dairy Foods appears optimistic, ready to embrace a new chapter where GST supports, rather than hampers, the nation’s vital dairy ecosystem.
Read the Full ThePrint Article at:
[ https://theprint.in/ani-press-releases/grb-dairy-foods-welcomes-gst-reform/2737270/ ]