Trade and markets
 

Detail

Area
India
Commodity Group
Oilseeds, oils and meals
Commodity
Oils and fats
Date
01/07/2017
Policy Category
Consumption and marketing
Policy Instrument
Food standards
Description
Confirmed that a revised standard for edible oils and fats would come into force on 1 July 2017, including a redefinition of inter-esterified vegetable fat and new rules regarding the use of food grade enzymes in oil refining processes.
Notes
Under India’s new Goods & Services Tax, GST (rolled out on 1st July 2017), oilseeds and vegetable oils fall in the 5 percent tax category, blended oil and margarine attract 18 percent tax, and oilmeals are tax-exempted. Essentially, the new classification is comparable to that applied under the previous value-added tax regime. However, the country’s industry associations demanded that oilseeds be moved to the zero tax bracket – akin to other essential commodities like rice, wheat and sugar, while blended oil and margarine should be taxed at 5 percent.