New Exemption for Inter-State Supplies of Milk Products

Central Government exempts inter-State supply of specified milk products from integrated tax. Applies to skimmed milk powder or concentrated milk falling under specific tariff items.

Condition: Must be supplied to a distinct person for use in milk production, not for further distribution.

Exemption facilitated under section 5 of the Integrated Goods and Services Tax Act, 2017. Aimed at supporting dairy cooperatives and milk production.

Ensures smoother supply chain and encourages local dairy industry. Rules interpreted as per Customs Tariff Act, 1975, ensuring clarity in application. (Mohit Tewari) Under Secretary to the Government of India