Imposing GST on food could have more impact on the poor. But exception of food from GST regime will shrink the tax base.

• Easy and Faster Availability of Food items ;After implemntion of GST because of the removal of octroi and entry tax which will significantly reduce the time and hassle of transporting goods across state borders, there will be easy and faster availability of food items.
• Alcoholic beverages  have been excluded from GST and they will be taxed separately.
• Essential items may be zero rated under GST : GST Council has indicated that essential food items will be either zero rated or will charged low GST rate .
• Dairy products ;- Due to the government’s priority of a farmer-centric approach and enhancing rural prosperity. dairy prodcuts may be zero rated or kept at low rate under GST
• Mandi Tax :– It is still unclear if Mandi tax which is imposed on fresh vegetables by some states like Uttar Pradesh and Rajasthan will be subsumed by GST.

Free Education Guide on Goods & Service Tax (GST)