Why is India taxing nutrition? A closer look at the higher GST on ghee vs oils

India Retailing

Why is ghee—India’s most celebrated health fat—taxed higher than ultra-processed seed oils? Despite being deeply rooted in Ayurveda and traditional diets, ghee attracts a 12% Goods and Services Tax (GST), while palm and soybean oils enjoy just 5%.This taxation disparity not only affects what consumers buy but also how retailers stock, price, and promote nutrition-led FMCG products. Retail Implicat…

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