GST Council decides to levy 5 pc tax on millet-based flour and molasses
The GST Council on Saturday decided to levy a lower 5 per cent tax on millet-based flour when sold in pre-packaged and labelled form, Finance Minister Nirmala Sitharaman said. Flour, containing at least 70 per cent millets, will attract zero per cent GST if sold loose, and 5 per cent if sold pre-packaged and labelled.
Team RuralVoice
The GST Council on Saturday decided to levy a lower 5 per cent tax on millet-based flour when sold in pre-packaged and labelled form, Finance Minister Nirmala Sitharaman said. Flour, containing at least 70 per cent millets, will attract zero per cent GST if sold loose, and 5 per cent if sold pre-packaged and labelled.
The 52nd GST Council meeting in New Delhi, chaired by Union finance minister and comprising state counterparts, also decided to reduce GST on molasses to 5 per cent, from 28 per cent, and exempt alcohol for human consumption from the levy.
Meanwhile, Uppal Shah, Co-founder and CEO, AgriMandilive.Research, said: “We welcome the GST Council’s decision to reduce GST on molasses from 28% to 5%. This is a big impetus for sugarcane-based ethanol producers, who use molasses as raw material for ethanol production. This will promote ethanol production further. The sugar industry has been demanding GST reduction on molasses for quite some time.
"I feel today’s decision will enable us to achieve the ethanol blending target of 20% by 2025, for which about 1,016 crore litres of ethanol would be required. This will also improve the liquidity of the sugar mills, which will ensure timely sugarcane price payments to farmers. There will be more cash flow for mills, and hence better financial capacity to pay farmers on time,” he added.
