In a Rajya Sabha reply dated 19 August 2025, the Ministry of Finance addressed a query on the Goods and Services Tax (GST) treatment of plant-based food alternatives such as meat, dairy, and egg substitutes. The government confirmed that a representation had been submitted by the Plant Based Foods Industry Association, forwarded by the Ministry of Food Processing Industries. The request sought a reduction in GST rates on these products and the introduction of separate HSN codes to align them more closely with animal-derived counterparts that are taxed at lower or nil rates.
In a Rajya Sabha reply dated 19 August 2025, the Ministry of Finance addressed a query on the Goods and Services Tax (GST) treatment of plant-based food alternatives such as meat, dairy, and egg substitutes. The government confirmed that a representation had been submitted by the Plant Based Foods Industry Association, forwarded by the Ministry of Food Processing Industries. The request sought a reduction in GST rates on these products and the introduction of separate HSN codes to align them more closely with animal-derived counterparts that are taxed at lower or nil rates.
The Ministry clarified that decisions on GST rates fall under the jurisdiction of the GST Council, a constitutional body comprising representatives from both the Centre and State Governments. The GST Council had already constituted a Group of Ministers (GoM) on Rate Rationalisation during its 45th meeting held on 17 September 2021. The Terms of Reference of this GoM include reviewing the current GST rate slab structure, including special rates, and recommending rationalisation measures.
The response did not provide any specific timeline for revision of GST slabs for plant-based food alternatives, indicating that any decision on rate parity or restructuring would depend on the recommendations of the GST Council after considering industry inputs and broader fiscal implications.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UNSTARRED QUESTION NO -2971
ANSWERED ON – 19.08.2025
GST ON PLANT-BASED FOOD ALTERNATIVE
2971 MS. SWATI MALIWAL:
Will the Minister of Finance be pleased to state:
(a) whether Government has received any representations seeking reduction in GST on plant-based meat, dairy, and egg alternatives to bring them in line with tax rates applicable to their animal-derived counterparts;
(b) if so, the details of such representations and Government's response thereto;
(c) whether Government is considering revising GST slabs to make them at par; and
(d) if so, the details and the timeline thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)
(a) A representation has been received from the Plant Based Foods Industry Association, forwarded by the Ministry of Food Processing Industries, seeking a reduction in GST rates and the creation of specific HSN codes for plant-based food products.
(b) to (d) GST rates are prescribed based on the recommendations of the GST Council which consists of representatives of both Centre and State Governments.
The GST Council in its 45th meeting held on 17th September, 2021 has constituted a Group of Ministers (GoM) on Rate Rationalisation and the Terms of Reference of GoM include review of the current rate slab structure of GST, including special rates, and recommend rationalization measures.