In a bid to promote millets as part of daily healthy diet, the upcoming GST Council is likely to reduce the GST rate on Millet-based health mix products. An industry demand was being considered by the GST Council nominated fitment committee for the reduction of GST rate, said a senior government official on the condition of anonymity.
After a detailed examination, the fitment committee has proposed to reduce the rate from the current 18 percent to Nil and 5 percent.
Fitment committee in its recommendations has proposed that a rate reduction can be considered given the fact that “since UN is celebrating the International Year of the Millets in 2023, GST Council can consider reducing the rate to nil if any millet-based health mix consisting of at least 70 percent
of millets is sold in loose form,” official added.
“And a reduction to 5 percent, if it is sold in pre-packaged and labelled form,” official said.
It is understood from sources that major FMCG players are foraying in this segment to promote millet-based healthy diet options, which includes P&G, Hindustan Unilever, Britannia and Paper Boat.
Apart from this, another proposal slated to be considered by GST Council is the reduction of the GST rate on pencil sharpeners.
Officials quoted above further shared that GST Council nominated fitment committee proposes to reduce the GST rate on pencil sharpeners, with the recommendation to reduce the GST rate from 18 percent to 12 percent.”
It is now to be seen whether GST Council decides to adopt the proposals recommended by GST Council.
Source: CNBC TV 18
https://www.cnbctv18.com/economy/gst-council-millet-based-health-mix-products-fitment-committee-united-nations-un-15926331.htm
https://www.cnbctv18.com/economy/gst-council-millet-based-health-mix-products-fitment-committee-united-nations-un-15926331.htm
