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52nd GST Council meeting FM Sri Arukh demands to reduce GST on Millet based products

New Delhi/Bhubaneswar, 07/10/2023 Union Finance Minister Smt. Nirmala Sitaraman chaired 52nd GST Council meeting held at Sushama Swaraj Bhawan, New Delhi today. Finance ministers of different states had participated in the meeting. Sri Bikram Keshari Arukha, Finance minister of Odisha had participated in the meeting and submitted many points for appreciation and consideration of the GST Council. Minister Sri Arukh expressed that Odisha is the pioneer state for promotion of millets through Millet Mission. The Government of India has asked all states to adopt Odisha Millets Mission model for promotion of millets. Reduction of GST rates on millet-based products can have a significant positive impact on the Odisha Millet Mission.

By reducing the GST rates on millet-based products,

the government can make them more affordable and accessible. This move can encourage more people to incorporate millets into their diet, leading to better health outcomes and supporting the local millet farmers. Exemption of GST on millet based health mix consisting of at least 70 percent of millet sold in loose condition will help to augment value-added millet products and overall development of business opportunities especially for women entrepreneurs of SHG in Odisha. Moreover, reduction of GST Rate will fulfil the demand for ensuring the economic stimulus to entrepreneurs engaged in production of millet based health mix.

Minister Sri Arukha also expressed that Odisha submitted a proposal for exemption of GST on services offered by DMF Trust. Fitment Committee examined our proposal and recommended to clarify that DMFT is a “Governmental Authority” and thus eligible for the same exemptions as available to any other “Governmental Authority” in the present scheme of things. As specified in Rule 10 of the Odisha District Mineral Foundation Rules, DMF Trusts are utilized for implementation of High Priorities activities and other priorities activities for socio-economic development and welfare of the people in mining affected areas. These activities undertaken by the DMF Fund are mostly in relation to activities enlisted in Eleventh Schedule [Article 243g] and Twelfth Schedule [Article 243w] of the Constitution of India. The aforesaid Rule envisages to supplement and complement the existing infrastructure of local body and ensure convergence with Local self-government by participating the members of local bodies in the DMF Trust. As per Rule 13 of ODMF Rules, the works undertaken by the Trust are executed through Government Departments, agencies and Public Sector Undertakings or by NGOs in mining affected areas. The ultimate users are individual, women, children and families of mining affected areas who avail these services free of charges. In the last two years, DMFT has paid GST to the extent of Rs.776/- Crore out of the DMF Fund collected solely for the purpose of socio-economic development & welfare of the people in mining affected areas.

Minister Sri Arukha requested to consider the proposal of Odisha for socio-economic development and welfare of the people in mining affected areas by either of the following two ways. The exemption presently allowed to the State Government, Central Government and Local Authorities on expenditure on pure services/composite supply of goods and services, in which value of goods does not constitute more than 25%, in Entry Sl. No. 3 & 3A of Exemption Notification No. 12/2017-CT(R) Dated 28.06.2017, may be extended to the DMF Trust or instead of creating a new entry to exempt 5 services supplied to Government Authority as per recommendation of Fitment Committee as mentioned in Serial No. 5 of Agenda Note in Annexure-IV, it is suggested to restore the exemption allowed earlier in respect of supply of pure services and composite supply where the value of goods constitutes not more than 25 per cent of the total value of supply to the Governmental Authority in entry sl. No. 3 and 3A of the said Notification Notification No. 12/2017-CT(R) Dated 28.06.2017. Considering the above points Finance Minister Sri Arukh stressed on exemption of GST on services offered by DMF Trust. Principal Secretary, Finance Sri Vishal Kumar Dev and GST Commissioner Sri Sanjay Kumar Singh also attended the 52nd GST Council meeting.

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