Mix 25 percent real mango in mango drinks, only then you will get exemption in GST, government asks companies

GST on Mango Drinks: If you like to buy mango juice or mango drink in summer, then this news is very important for you. Now in the future, the price of mango juice and the GST applicable on it may depend on how much real mango pulp is used in it. The government is considering a new rule, under which tax relief can be given to those mango drinks in which more real mango pulp has been used. The main objective of this proposal is to encourage companies to make better quality products and to benefit the common customers.

Who will get the benefit of 5% GST?

The government committee has said that mango drinks which contain 22% to 25% or more natural mango pulp will continue to get the benefit of the existing concessional rate of 5% GST. At the same time, higher GST can be imposed on products whose pulp content is less than the prescribed limit. However, the final decision to implement this proposal will be taken only after the approval of the government and the GST Council.

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Why did this proposal come?

Totapuri mango is mainly grown in Karnataka, Andhra Pradesh and Tamil Nadu. But this season, farmers had to suffer huge losses due to fall in the prices of Totapuri mango. According to experts, slow procurement by processing companies and increasing sales of low pulp drinks were the biggest reasons for this.

How will farmers and customers benefit?

• Companies will be encouraged to use more natural mango in their products.
• This is expected to increase the demand for Totapuri mango.
• With this, farmers can get their crops at a better and better price than before.
• Customers will get such mango drinks which will have more quantity of real fruit than before.
• Besides, this is also expected to boost 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, the tax (GST) structure for mango drink can be prepared.
• The committee has also recommended to improve Totapuri mango orchards and encourage farmers to produce value-added products.

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