Rahul Gandhi Tweeted this posted on 18 July 2022 -

Arvind Kejriwal said on 25 July 2022 -

Today people are upset with inflation. They (Central Govt) have imposed GST on curd, lassi, wheat, rice & other food items. The British used to do the same.

Mallikarjun Kharge tweeted on 18 July 2022-

The hike in GST of rice, wheat, curd, barley, paneer, hospital rooms & other essential items is an issue of public concern which we tried to raise for debate. As usual the opposition wasn't allowed to speak which is curbing the voice of people, an intolerable act in a democracy.

Mamta Benejrjee said this on 22 July 2022

“What will we have? What will people have? If I want to have a plate of muri, I have to pay GST…,”

NDTV report 20 July 2022

Leaders of opposition parties including the Congress, Nationalist Congress Party (NCP), Dravida Munnetra Kazhagam (DMK) and the Left raised slogans against the government demanding a roll back of the hike in GST rates on commodities like curd, bread, and paneer.

The decisions made during the 47th GST Council meeting, which came into effect on July 18, 2022, have sparked varied reactions from political leaders. The GST Council, based on proposals for rate rationalization put forth by the Group of Ministers, decided to withdraw tax exemptions on several food items during its 47th meeting. Notably, exemptions on retail packages that are pre-packaged and labeled, such as curd, lassi, and buttermilk, have been eliminated.

In July 2022, Finance Minister Nirmala Sitharaman stated that the decisions were made with the consensus of all states. She clarified that a 5% tax is now levied on wheat flour and other items following the approval of all states, including non-BJP ruled states such as Punjab, Chhattisgarh, Rajasthan, and Tamil Nadu.

In July 2022, There was claims and counter claims on the decision. So I filed RTI to know the truth. I have sought the minutes of the meeting of the 47th meeting of the GST council. But the information was denied then as minutes was not finalized.

The long-awaited minutes of the 47th GST Council meeting have finally been made available online, shedding light on the decision-making process and revealing the report submitted by the Group of Ministers (GoM). The uploaded documents clearly demonstrate that the opposition parties have misled the nation on the taxation of curd,lassi and paneer.

To understand the decision-making procedure, it is essential to go back to the 45th GST Council meeting held on September 17, 2021. During this meeting, the GST Council decided to form a GoM tasked with examining matters related to rate rationalization and the correction of inverted duty structures. This GoM submitted an interim report during the 47th GST Council meeting, recommending the elimination of tax exemptions on curd and paneer. Subsequently, the GST Council approved the GoM's recommendation and imposed taxes on these dairy products.

Opposition parties have consistently claimed that the decision to tax curd and paneer was solely made by the central government, currently led by the Bharatiya Janata Party (BJP). However, it is important to note that state governments under the opposition also have representation in both the GoM and the GST Council, providing them with two platforms to voice their concerns regarding the taxation of paneer, curd, and buttermilk. Surprisingly, no objections or protests were raised by opposition parties at either stage, neither during the GoM discussions nor during the final decision-making process within the GST Council.

Let us first delve into the role of the GoM and then examine the actions of the GST Council.

The Group of Ministers on Rate Rationalization (GoM) was constituted, with Basavaraj Bommai, Chief Minister of Karnataka, serving as the convener. The GoM comprised chief miniters of the Non BJP ruled states as under :

The GoM, consisting of members from the opposition-ruled government, recommended the elimination of tax exemptions for packaged paneer, lassi, and curd. The opposition had adequate representation in the GoM to voice their opposition to the proposal of imposing GST on curd and paneer. Notably, the GoM report does not contain any dissenting notes from opposition members, indicating a consensus within the GoM regarding the withdrawal of tax exemptions for the aforementioned products, as suggested to the GST Council.

Now let come to the Decision of the GST council to impose GST on the packed curd, paneer and buttermilk

Agenda number 14 of the The GoM report, previously discussed in detail, formed the foundation of the discussions within the GST Council. The GoM report, previously discussed in detail, formed the foundation of the discussions within the GST Council.

During deliberations on this agenda, a member representing Delhi, from the Aam Aadmi Party (AAP), shared their perspective on the matter.

GoM had presented an excellent report before them and it also appeared from the report that the Members of the GoM unanimously agreed to the suggestions presented in the report. He stated that after going through the report minutely he realised that it was carefully considered.

The finance minister of Delhi applauded a report that recommended imposing GST on packed curd and buttermilk in the GST Council. On the other side, the Delhi CM blamed the Union government for that. Arvind Kejriwal said on 25 July 2022 -

Today people are upset with inflation. They (Central Govt) have imposed GST on curd, lassi, wheat, rice & other food items. The British used to do the same.

Representative of the Opposition parties ruled state of Bihar and Tamil also appropriated the report in GST council deliberations.

It is worth noting that during the discussions, a member representing Tamil Nadu expressed concerns regarding the GoM's proposal to increase the GST on government contracts from 12% to 18%. However, no opposition member raised objections to the imposition of GST on packed buttermilk and curd.

In the GST Council, members have the right to call for a division of votes, providing an opportunity for opposition members to express their disagreement. For example, during the 38th GST Council meeting, Kerala demanded a vote on the GST rate for lotteries. Surprisingly, no member requested a division of votes during the 47th council meeting concerning the imposition of GST on packed curd, paneer, and buttermilk.

Hence, it is evident that while opposition parties voiced their opposition in Parliament and the media regarding the imposition of GST on packaged curd and buttermilk, they did not make any efforts to impede this proposal in the GoM or GST Council.