No Separate GST Treatment For Ultra-Processed Foods, High-Fat Items: Finance Ministry Tells Lok Sabha
The Union government has informed the Lok Sabha that the Goods and Services Tax (GST) framework does not provide separate tax treatment for ultra-processed foods (UPFs) or foods high in fat, sugar, or salt (HFSS), and that no formal assessment has been undertaken on the potential health and economic benefits of imposing higher taxes on such products.
Responding to a question asked by Congress MP G. Kumar Naik from Raichur in Karnataka, Minister of State for Finance Pankaj Chaudhary said on Monday that GST rates and exemptions are prescribed on the recommendations of the GST Council, which consists of members of the Union and State governments.
The minister stated that GST rate schedules are based on the Harmonized System of Nomenclature (HSN), an international product classification system used to categorize goods for taxation and trade.
Food products are classified under Chapters 1 to 21 of the HSN, the minister said, adding that “there is no separate treatment for GST rates on ultra-processed foods (UPFs) and foods high in fat, sugar, or salt (HFSS).”
Responding to a query on whether the government has examined the potential health and economic benefits of imposing higher taxes on unhealthy food products, the minister said that no formal assessment has been undertaken in this regard.