Tax relief for essential food supplies under Delhi govt depts

In a move aimed at bolstering food security and nutrition programmes, the Delhi Government has amended its Goods and Services Tax (GST) framework to extend tax relief to key food inputs used in government-run welfare schemes.

A notification issued by the Finance (Expenditure-I) Department of Delhi this week states that the exemption under the State Tax (Rate) Notification has been broadened. It now includes “food inputs” used in the preparation of fortified rice kernels (FRK) supplied through schemes such as the Integrated Child Development Services (ICDS) and similar initiatives.

This change ensures that not only the fortified rice kernels but also the ingredients used to produce them will benefit from GST exemption under the Delhi Goods and Services Tax Act, 2017. The order, which takes immediate effect, follows recommendations from the GST Council and was authorised by Delhi’s Lieutenant Governor VK Saxena in the public interest.

Officials said the move would help reduce production costs for fortified rice, easing the implementation of nutrition-driven welfare programmes, particularly those targeting children and vulnerable groups.