Raisins declared tax-free: Maharashtra’s demand approved by GST Council

The 55th meeting of the GST Council was held on December 21-22, 2024, in Jaisalmer, Rajasthan, under the chairmanship of Union Finance Minister Nirmala Sitharaman. Finance ministers and other representatives from across the country participated in the council, with Minister Aditi Tatkare representing the Maharashtra government.

Minister Tatkare had recommended that raisins, like turmeric and jaggery, be recognised as an agricultural product and exempted from GST. This proposal was approved, resulting in raisins, which previously attracted a 5 per cent GST, now being made tax-free.

Raisins, along with turmeric, jaggery, and similar products, were tax-exempt under the Maharashtra Value Added Tax (MVAT). However, raisins, unlike other dried fruits, fell under the GST tax bracket. Since raisins are made by simply drying grapes without any additional processing, the demand was made to classify them as agricultural products and exempt them from the current 5 per cent tax bracket. The council’s positive decision has now made raisins sold directly by farmers tax-free.

Commenting on the decision, Minister Aditi Tatkare stated that raisins, like other agricultural products, are produced directly by farmers without any additional processing. Therefore, granting them agricultural status and tax exemption is a matter of satisfaction. She added that districts like Nashik and Sangli in Maharashtra produce raisins on a large scale, and women’s self-help groups are also significantly involved in the sector. This decision will benefit them greatly.

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