New Delhi: During the Union Budget debate, Trinamool Congress MP Abhishek Banerjee sparked a controversy by highlighting the GST burdens on everyday items such as powdered milk (5%), graph paper, lab notebooks, and crayons (12% each), while excluding fresh milk and textbooks. He argued these hit poorer families the hardest, stating, “Zero tax on what she can’t buy, 5 percent tax on what she’s forced to buy,” referring to powdered milk alternatives.
Countering sharply in Lok Sabha, Sitharaman accused the MP of distorting facts and misleading the House. “Ever since the GST was introduced in 2017, there has been ZERO GST on milk,” she declared, questioning if members were being taken for fools. She clarified fresh milk has always been fully exempt, though derivatives like ghee, paneer, and butter saw rates reduced from 12% to 5% in recent GST council decisions.
In education, the minister emphasised, “From pre-school to higher secondary, no GST is applicable.” Recognised qualifications attract no tax. Books, subject-wise books, notebooks, pencils, sharpeners, erasers, practice books, and maps have been tax-free since 2017.” Healthcare services, including treatment and diagnosis, have carried zero GST since July 2017, with further relief on personal health and life insurance to 0% under next-generation reforms in September 2025.
Addressing funeral services, Sitharaman stated unequivocally: “There was no GST on funeral services ever in the first place,” adding services related to life’s final moments remain exempt. She lamented the twisting of known facts.
Banerjee later rebutted on social media, thanking her for listening but urging focus on real burdens like pending scheme dues. The exchange underscores ongoing debates on equitable taxation amid economic pressures.