In a written reply to a query in the Lok Sabha, Union Home and Cooperation Minister Amit Shah addressed the ongoing efforts by the Ministry of Cooperation to secure GST exemption for products and services provided by cooperative societies.
He emphasized that proposals related to GST are examined by the GST Council, a constitutional body.
“Since the establishment of the Ministry of Cooperation on 6th July 2021, it has been a priority to encourage states, Union Territories (UTs), and cooperative societies to submit proposals related to taxes, particularly those that are not in line with the benefits extended to other business entities,” he added.
In this regard, a memorandum dated 25th November 2024 from the Minister of Cooperation, Tamil Nadu, was received, seeking, among other things, GST exemption for cooperative products and services. The proposals related to GST are examined by the GST Council. Recently, the GST on molasses was reduced from 28% to 5%, which will benefit Cooperative Sugar Mills.
