Higher input tax retention under GST can increase prices of de-oiled cake prices

Solvent extraction units are caught in a peculiar situation. While the Centre has exempted de-oiled cakes under GST, inability to claim full credit on input tax paid on oil seeds will likely force extraction units to pass on the higher cost to the poultry and cattle farming sector by increasing the price of de-oiled cake. An uptick in domestic prices can in turn lower India’s competitiveness, hitt...