No GST on flour with 70% millets if sold in loose form: FM Nirmala Sitharaman

The GST Council, during its recent meeting chaired by Finance Minister Nirmala Sitharaman, made a significant recommendation regarding the tax rates for flour containing at least 70 per cent millets. The decision aims to support the promotion of millets during what has been termed the "year of millets."

Under the new recommendation, food preparations of millet flour in powder form, consisting of a minimum of 70 per cent millets by weight, fall under HS 1901.

When millet flour is blended with other flours and the millet composition remains at 70 per cent, it will be subject to zero per cent GST if sold in a form other than pre-packaged and labelled. However, if sold in pre-packaged and labelled form, a 5 per cent GST will apply.

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Finance Minister Sitharaman emphasised the council's desire to actively participate in promoting millets, highlighting the role of GST in this project.

Official release confirms GST rates

An official release subsequently clarified the decision on GST rates for "food preparation of millet flour in powder form, containing at least 70 per cent millets by weight," falling under HS 1901.

The new rates will come into effect from the date of notification. The release confirms that these products will be subject to zero per cent GST if sold in forms other than pre-packaged and labeled, and a 5 per cent GST if sold in pre-packaged and labelled form.

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This decision reflects the government's ongoing commitment to encouraging the consumption of millets, which are known for their nutritional benefits.

(With inputs from agencies)

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