The 52nd Goods and Services Tax (GST) Council Meeting, presided by Union Finance Minister, held on October 7th, 2023. The minister was accompanied by Revenue Secretary Sanjay Malhotra, State Finance Minister Pankaj Chaudhary, CBIC chairman ..etc.
The GST Council made a notable decision regarding the taxation of millets. They declared that loose millets, when in powder form, less than 70%, will now be subject to a ‘Zero’ percentage GST rate. However, for millets that come in pre-packaged and labelled form which is less than 70%, a 5% GST rate will apply
This decision reflects a favourable move by the GST Council to promote the consumption of millets, especially in their loose and unprocessed form. By reducing the tax burden on loose millets in powder form, the Council aims to encourage their availability and affordability for consumers. This could potentially lead to increased consumption of millets, which are known for their nutritional value and health benefits.
On the other hand, the 5% GST rate for pre-packaged and labelled millets is likely intended to maintain tax revenue while encouraging manufacturers to provide clear labelling and packaging for consumer convenience and information.
Overall, this decision aligns with the broader goal of the GST Council to streamline and rationalise the Goods and Services Tax rates for various goods and services to ensure a fair and equitable tax system. It also promotes healthier food choices by making millets more accessible to consumers.
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