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Fast food chain McDonald's India has introduced 12 new products across its food and beverages category at its outlets in south and west India, the owner of its master franchisee for the region Westlife Development said today.

The company, through its subsidiary Hardcastle Restaurants Pvt Ltd (HRPL), operates 261 McDonald's outlets across 36 cities in the south and west India.

Development said in a statement the restaurant chain is introducing cuisines from across the world - a range of 12 new products with Italian, American and Indian roots, Westlife.

"McDonald's India Senior VP Strategy, Innovation and Capability Seema Arora Nambiar said "We firmly believe that food and flavours have no borders, and they unite people.”

The new products will only be present at the outlets in south and west India and not in north and east region due to the ongoing dispute between McDonald's India and its estranged joint venture partner Vikram Bakshi.

The 169 outlets in north and east India is run by Connaught Plaza Restaurants Ltd (CPRL), a 50:50 joint venture between Bakshi and the fast food chain.

The government said on that free food supplied in anna kshetras (food areas) run by religious institutions have been kept out of the GST ambit. Besides, prasadam distributed by religious places of worship like temples, mosques, churches, gurdwaras and dargahs, would not attract any Goods and Services Tax (GST).

The government rejected media reports which suggested that GST would be levied on free food supplied in anna kshetras run by religious institutions. A statement from the finance ministry said, "This is completely untrue. No GST is applicable on such food supplied free."

However, some of the items and services required for making prasadam would be subject to GST, including sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.

The ministry said, "Under the GST regime, it is difficult to prescribe a separate rate of tax for sugar, etc, when it is supplied for a particular purpose. GST, being a multi-stage tax, end use-based exemptions or concessions is difficult to administer. Therefore, GST does not envisage end use based exemptions."

It added, "It would, therefore, not be desirable to provide end use-based exemption for inputs or input services for making prasadam or food for free distribution by religious institutions."

Union Minister of Commerce and Industry, Nirmala Sitharaman has denied that peanut brittle was taxed more under Goods and Services Tax (GST) than pizza, and said such rumours were being spread by the social media.

While addressing a meeting to give clarifications on GST in Tamil Nadu, she said, "Only 5% GST was imposed on peanut brittle, whereas 18 per cent GST was levied on pizza served at restaurants and 5% on pizza breads that can be used in homes or eateries."

On a request to exempt Idly batter and match boxes from GST, she said that the same would be placed before the GST council for consideration.

She said, "GST was not aimed at increasing the revenue but monitoring the 85 per cent informal economy of the country which was functioning without any bank transaction."

Stating that BJP had earlier opposed GST as it did not have the compensation component for manufacturing states like Tamil Nadu, Madhya Pradesh and Gujarat, she said, "Now we have introduced compensation for the manufacturing states."

She added, "Both the Central and State governments will now get equal revenue from GST."

The minister said, "GST rates were fixed in consultation with all the state governments after various rounds of meeting of GST councils with the participation of finance ministers of 29 states, seven union territories and Union Finance Minister."

She added, "I believe Tamil Nadu representatives would have discussed the business concerns of the state in the council."

Sitharaman also urged the small and medium businessmen to registrar under GST. 

The GST (goods and services tax) would reduce the prices of junk food such as pasta, cake, pastry and chocolates.

Tax levied on chocolate would come down from 30% to 28%, while there would be only 18% GST on pasta, cake, pastry and pizza, which is less than the present rate. Cooked meat, mineral water and non-alcoholic drinks would cost less too.

Consumers may have to spend less to run the kitchen as sugar, food grains, jaggery, vegetable oil, domestic LPG, biscuits, raisins and gum, confectionery items, baking powder, margarine, matchsticks and candles would be cheaper as GST imposed would be less than the tax-rate effective at present.

Harsimrat Kaur Badal, Union Food Processing Minister, has taken up with the finance ministry the issue of high GST rate proposed on some products like pickles, murabba and papad and sought a review of the same.

The minister has also forwarded Coca-Cola India's demand not to include fizzy drinks in the 'sin' category under the Goods and Services Tax (GST) to be rolled out from July 1.

Badal said, "Higher GST rate has been proposed for two-three categories of food items such as pickles, murabba and papad. The industry has made representation, which has been forwarded to the finance minister. It will study and take a call."

She said, "Coca-Cola India has demanded not to include fizzy drinks in sin category.The company is okay with higher tax but asking not to include the product in the sin category along with tobacco and alcohol. I have communicated this to the finance minister."

She further added, "The government has taken various initiatives in the last three years including setting up of mega food parks and cold chains as well as allowing 100 per cent FDI in the marketing of food products manufactured and produced in India.

According to Badal, the government has recently approved Rs 6,000 crore scheme called 'Sampada' which includes existing schemes like mega food parks and some new programmes.

The government is identifying agro-clusters across the country where food processing facilities can be established to help farmers earn more income and reduce wastage.

She said, "On FDI in food retail, about USD 700 million investment has been proposed by Amazon, Grofers and Big Baskets. These firms have evinced interest to set up stores and have applied for necessary clearances with the commerce ministry."