The Goods and Services Tax (GST) Council has reduced the tax on plant-based milk and meat alternatives to 5%, aligning it with rates applied to animal-based products. The move is being seen as a significant boost for the country’s fast-growing vegan and plant-based food sector.
Until now, most plant-based products such as soy, almond, oat milk, and meat alternatives were taxed at 12–18%, while fresh cow’s milk and most meats carried either no tax or a 5% rate. Under the revised structure, items including nutritional yeast and single-cell proteins will now be taxed at 5%.
Industry experts welcomed the decision. Astha Gaur of the Good Food Institute India called it a “progressive step” that would make plant-based foods more affordable and expand their consumer base.
The reform comes amid rising consumer demand for plant-based diets and heightened interest in sustainable food systems. Analysts believe the revised GST will narrow the price gap between plant-based and animal-based foods, boosting adoption among health-conscious and price-sensitive consumers alike.
The new GST regime will come into effect from September 22, 2025.
Source : Dairynews7x7 Sep 11th 2025