On Saturday, Union Finance Minister Nirmala Sitharaman announced that the GST Council has made a decision regarding millet flour. According to the decision, millet flour containing 70% composition will be exempt from tax, while branded products will be subject to a 5% GST rate. Previously, the GST Council's fitment committee had proposed exempting powdered millet from taxation but did not provide any incentives for millet-based prepared products.
During the post-meeting press conference, the minister stated that millet flour with a composition of at least 70% by weight will be exempt from GST when sold without branding or packaging. The exemption holds particular significance as millet flour has gained popularity for its high nutritional value, and India is currently celebrating 2023 as the 'Year of Millets.' This aligns with the government's efforts to promote millets.
"The GST Council is eager to take part in the 'Year of Millets.' When millets, in powdered form, are blended with other flours such that millets constitute 70% of the composition, there will be a 0% GST rate if they are sold without pre-packaging and labelling," Sitharaman explained on Saturday.
The GST Council did not provide clarity on the matter of online gaming. During the meeting, Finance Minister Sitharaman mentioned that states had brought up the issue of tax demand notices issued to gaming companies and others under the GST regime. Some states have characterized these notices as "retrospective taxation."
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