Chief Minister Basavaraj Bommai on Tuesday told the Assembly that brands should ideally cut prices on curds.
The levy of GST on curd was raised by MLAs during a debate on the Karnataka Goods and Services Tax (Amendment) Bill, which was passed in the Assembly.
“It’s not tax on the curd. The packaging used by brands. They weren’t able to take credit. So, a 5% tax is levied so that they can take credit. In fact, the rate can reduce if they pass it on, which isn’t happening. In the next GST Council, we will take up some matters,” Bommai, who represents Karnataka in the GST Council, said.
Bommai, who headed the group of ministers on GST rate rationalisation, said many states have raised the issue. “In GST, there are many inward credits. In some cases, there’s (a levy) on the packaging, but not the main product. In other cases, it’s the main product, but not the packaging. So, they hiked the rate on packaging (due to levy). But, now that we’re giving credit, (manufacturers) can reduce the rate,” he said.