No GST on flour that has 70% millets, says FM Sitharaman

The GST Council on Saturday exempted Goods and Services Tax (GST) on flour containing 70% of millet, said Union Finance Minister Nirmala Sitharaman on Saturday in a press briefing after the conclusion of the 52nd meeting of the body. The Council also reduced GST to 5% from 18% millets flour preparation on branded and pre-packaged and labelled products.

"Food preparation of millet flour containing at least 70% of composition by weight, will have nil GST when sold loose without branding," the FM said in the press briefing.

CNBC-TV18 had earlier reported that the Council was "likely to have approved a reduction in taxes on millets."

Earlier, the fitment committee of the GST Council had recommended the exemption on powdered millet. It had refused to give any incentive for prepared produce made out of millet.

India is observing 2023 as the 'Year of Millets' with the Narendra Modi government aggressively promoting millets or 'Sri Anna'.