To promote healthier food choices and support the “Year of Millets” initiative, the Goods and Services Tax (GST) Council announced a substantial reduction in the GST rate on millet-based products. This decision, made during the 52nd GST Council meeting, will see the tax rate on millet flour food preparations drop from the current 18% to just 5%.
The GST Council’s fitment committee had previously recommended an exemption for powdered millet but declined to provide incentives for prepared products made from millet. However, with the rising popularity of millet flour due to its nutritional value and health benefits, the government’s goal is to make these nutritious food items more accessible to the public.
India has designated 2023 as the ‘Year of Millets,’ and the government is actively working to boost millet production and consumption. Millets are recognized as climate-resilient crops that require less water and minimal use of fertilizers and pesticides, as stated by Union Agriculture Minister Tomar.
In a global context, India has taken a leading role in promoting millets, as supported by 72 countries; the United Nations General Assembly declared 2023 the International Year of Millets (IYM 2023). This declaration has positioned India at the forefront of the worldwide celebration of millets.
The government’s mission is to champion millet as a crop that benefits farmers, the environment, and consumers alike. Union Finance Minister Nirmala Sitharaman presided over the 52nd GST Council meeting at Sushma Swaraj Bhawan in New Delhi, where this significant tax reduction was announced.
The GST Council, which convenes periodically, plays a vital role in shaping India’s indirect tax structure, ensuring it aligns with the nation’s economic goals and eases the tax burden on citizens and businesses. The decision to lower the GST rate on millet-based products to 5% reflects a commitment to improving public health and supporting sustainable agricultural practices.