The Goods and Services Tax (GST) Council on Saturday, October 7, decided to slash tax on millet flour food preparations from the current 18 per cent GST to 5 per cent, in an aim to make nutritious food items more accessible to the public. Millet flour, known for its nutritional value and health benefits, has gained popularity among health-conscious consumers in India.
The Goods and Services Tax (GST) Council on Saturday, October 7, decided to slash tax on millet flour food preparations from the current 18 per cent GST to 5 per cent, in an aim to make nutritious food items more accessible to the public. Millet flour, known for its nutritional value and health benefits, has gained popularity among health-conscious consumers in India.
The move aligns with the government's efforts to promote a healthier lifestyle and dietary choices. This, in turn, is likely to boost the consumption of millet flour food, benefiting the overall health and well-being of the population.
Addressing a post-meeting press conference, Finance Minister Nirmala Sitharaman said that the food preparation of millet flour containing at least 70 per cent of composition by weight, will have nil GST when sold loose without branding. The tax on millets flour preparation reduced to 5 per cent from 18 per cent on branded and pre-packaged and labelled.
This means that flour, containing at least 70 per cent millets, will attract zero per cent GST if sold loose, and 5 per cent if sold pre-packaged and labelled.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
FM Sitharaman noted that the GST reduction on molasses, a by-product of sugarcane and used as raw material for alcohol production, to 5 per cent from 28 per cent will benefit sugarcane farmers and lower cattle feed cost.
Among other key decisions taken by the GST Council today, the GST Council also decided to cap the maximum age of President and members of the GST Appellate Tribunal (GSTAT).
The GSTAT President will have a maximum age cap of 70 years, while the limit for members will be 67 years. This is a change from the earlier age limit of 67 and 65 years, respectively, for the President and members of GSTAT.
The GST Council, among its key decisions, has also ceded the right to levy tax on extra neutral alcohol (ENA)-supplied for the manufacture of alcoholic liquors - to the states.
"ENA (potable alcohol) for human consumption will be exempt from GST and the same will be communicated to the Supreme Court," Chhattisgarh Deputy Chief Minister T S Singh Deo told reporters after the GST Council meeting. However, ENA manufactured for industrial purposes will continue to be under the ambit of GST and attract 18 per cent tax, according to the Council.