The forthcoming GST Council is anticipated to lower the GST rate on millet-based health mix products in an effort to promote millet as a regular component of a healthy diet. According to a senior government source who spoke on the record under the condition of anonymity, the GST Council-nominated fitment committee was taking into account an industry request for a drop in the GST rate.
The fitment committee has suggested lowering the rate from the existing 18% to Nil and 5% after careful consideration.
Given that, according to the Fitment Committee’s recommendations, a rate decrease can be taken into consideration. “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 per cent of millets is sold in loose form,” as per the official.
Officials stated that “And a reduction to 5 per cent if it is sold in pre-packaged and labelled form,”.
According to reports, big FMCG companies like P&G, Hindustan Unilever, Britannia, and Paper Boat are entering this market to promote millet-based healthy food alternatives.
In addition, the GST Council is scheduled to review a proposal to lower the GST rate on pencil sharpeners.
According to the officials who were previously mentioned, the GST Council-nominated fitment committee has recommended that the GST rate of products on pencil sharpeners be lowered from 18 per cent to 12 per cent.
It would now be interesting to observe if GST Council agrees to implement the suggestions made by GST Council.
