Finance Minister Nirmala Sitharaman provided clarity on the Goods and Services Tax (GST) applied to various essential products, including milk and educational materials, during a parliamentary session. She emphasized that the GST exemption has remained unchanged since the tax system was introduced in 2017. However, she made it clear that items like pencils, sharpeners, erasers, workbooks, notebooks, and maps are still exempt from GST, countering suggestions to impose tax on these educational necessities.

Regarding milk, Sitharaman stated that it has been fully exempt from GST since the beginning. Although the 56th GST Council meeting had reduced the tax rate on products made from milk, such as ghee, paneer, and butter from 12% to 5%, she reiterated that milk itself continues to be outside the scope of GST. Her response came amidst growing controversy over taxation proposals related to essential goods, stressing that essential educational items have been tax-free for a long time.

The finance minister's clarifications aim to quell the controversy surrounding GST exemptions on basic necessities, as many stakeholders have raised concerns that new taxes could impact the affordability of these essential items. This response potentially alleviates worries among consumers and educational institutions about possible tax implications on vital everyday products.