There might be 0% GST on millet flour products soon.

The GST (Goods and Services Tax) Council is thinking about removing the 18% GST on millet flour mixes, which have at least 70% traditional grains by weight. This exemption would apply if the product is sold without being pre-packaged and labeled.

Currently, the GST on millet flour food preparations is 18%.

Sources suggest that the GST Council, which includes representatives from the central and state governments, is considering making millet flour food preparations exempt from GST. The current 18% tax might be reduced to zero.

The government is promoting the consumption of millets because they are not only healthy but also environmentally friendly—they require less water and fewer chemicals to grow.

If the proposal is approved, food preparations in powder form with at least 70% millets by weight might not have any GST if sold without being pre-packaged and labeled. This matter is expected to be discussed in the upcoming GST Council meeting on October 7.

This proposal was previously discussed in the 49th and 50th GST Council meetings but was postponed for further examination. The decision will affect food preparations with millet flour as the main ingredient, regardless of other ingredients’ weight or volume.

To encourage millet-based products, the GST Fitment Committee has suggested reducing the rates, especially since 2023 is being celebrated as the Year of the Millets. If the food preparation is pre-packaged and labeled, the GST rate might be reduced to 12% from the current 18%. The decision aims to support millet consumption and promote millet-based products, considering their nutritional benefits and environmental sustainability.

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