GST Relief Sought for Mango Pulp and Fruit Juices
In recent months, GST relief sought for mango pulp and fruit juices has become a hot topic among fruit processors and exporters. With rising food inflation and reduced global demand, the industry is lobbying for a tax rate cut from the current 12% to 5%. This blog breaks down the legal and economic angles behind this demand — and what it means for businesses.
Current GST Rates on Mango Pulp and Juices
As per Notification No. 1/2017-Central Tax (Rate) and related schedules:
| Item | Current GST Rate | Classification |
|---|---|---|
| Mango pulp (sweetened) | 12% | HSN 2008 |
| Fruit pulp or juice (packed) | 12% | HSN 2009 / 2008 |
| Unbranded fruit pulp | 5% (in some cases) | HSN 2008 |
| Fresh mangoes | Exempt | HSN 0804 |
Note: Fresh fruits are exempt. Processed products like pulp or juice attract GST due to value addition and packaging.
Why the Industry Wants GST Relief
The All India Food Processors’ Association (AIFPA) and exporters have formally requested GST reduction citing:
- Food inflation: Higher GST gets passed to the end consumer
- Export competitiveness: Global buyers demand lower prices, especially from mango pulp suppliers
- Job impact: The fruit processing sector supports lakhs of seasonal workers
- Pre-GST scenario: Processed food items were taxed lower under VAT/service tax regime
Legal Grounds for Rate Reduction
- Article 279A of the Constitution: GST Council has powers to recommend rate rationalisation
- Section 11 of CGST Act, 2017: Allows government to reduce GST on goods in public interest
- Past examples:
- Frozen vegetables saw a rate cut from 12% to 5%
What Happens If GST Is Reduced?
If GST on mango pulp and juices is brought down to 5%:
- Consumer prices will likely drop
- Manufacturers may see better margins and demand revival
- Exporters could become more competitive globally
- Small food processors may expand production
But revenue implications for the government could delay the decision, especially during monsoon season when tax collections dip.
Expert View: What Businesses Should Do Now
“Businesses should maintain separate records for mango pulp and fresh mango trade. If a rate change is announced, quick invoicing and ITC treatment will need attention.” — Efiletax GST Advisor
Proactive planning will help in swift transitions and avoid ITC disputes if retrospective changes occur.
Government’s Likely Approach
- Final rate cut will depend on input from states and finance ministry concurrence
Related Efiletax Blog
👉 Latest GST Rate Changes after 53rd Council Meeting
FAQ on GST for Mango Pulp and Juices
Q1. Is mango pulp GST-free?
No. Sweetened or packaged mango pulp attracts 12% GST.
Q2. What about fresh mangoes?
Fresh mangoes are exempt under GST.
Q3. Can MSMEs claim Input Tax Credit on mango pulp?
Yes, if registered under GST and used for further supply.
Q4. Is there a chance of GST rate cut on juices?
Yes, industry bodies have formally requested it; the GST Council is evaluating.
Summary
GST relief sought for mango pulp and fruit juices amid industry concerns on high tax burden, export slowdown, and inflation. Current rate is 12%; proposal seeks reduction to 5% for packaged fruit pulp. GST Council review is underway.
Efiletax helps you track and comply with every GST rate update. Whether you’re a food processor or exporter, we ensure your filings stay accurate and compliant.