GST to Boost Competitiveness of Edible Oils Domestically & Globally

24-Sep-2025 12:05 PM

Mumbai. The President of the Solvent Extractors' Association of India (SIA), a leading industry body, stated that the Central Government has fulfilled a long-standing demand by the industry by simplifying the GST structure.

This is expected to enhance the competitiveness of Indian edible oils in domestic and global markets. This revision in GST rates could also boost oil meal exports.

According to the President, the government has reduced the GST rate on vegetable oils and their important co-products to 5 percent.

This change in the duty structure will have a positive impact on the edible oil industry. This progressive step will reduce the pressure on the industry's working capital, improve affordability for consumers,

increase demand and consumption of products, and enhance the competitiveness of Indian edible oils and oil meal in both the domestic and global markets.

Additionally, the government has given manufacturers, packers, and importers until March 31, 2026, to revise the highest retail price (MRP) for manufactured goods and unsold stock of imported products.

However, the government order states that the original MRP must be clearly visible, and any revised MRP must clearly reflect the change in GST rates.

This means that the revised prices, both before and after the GST rate changes, will continue to be displayed at the packaging level to ensure that companies have fully complied with government regulations.

If edible oil production occurred after the GST rate revision, the new rate must be displayed on the product. This will provide relief to both the edible oil industry and consumers.