Notification No. 18/2023 | GST Exemption for Millet Flour

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Notification No. 18/2023 - Central Tax (Rate): Seeks to amend Notification No 02/2017- Central Tax (Rate) dated 28.06.2017.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the CGST Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.2/2017-Central Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number

G.S.R. 674(E), dated the 28^th June, 2017, namely:-

In the said notification, in the Schedule, after S. No. 94 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: -

(1)	(2)	(3)
“94A.	1901	Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labelled”.

2. This notification shall come into force with effect from the 20^th day of October, 2023.

Vikram Wanere
Under Secretary

Note: - The principal notification No.2/2017-Central Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E)., dated the 28^th June, 2017 and was last amended by notification No. 04/2023 – Central Tax (Rate), dated the 28^th February, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 150(E)., dated the 28^th February, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 18/2023 – Central Tax (Rate)

Q1: What is Notification No. 18/2023 – Central Tax (Rate) all about?

Answer:
This notification amends Notification No. 2/2017 – Central Tax (Rate) by inserting S. No. 94A, granting GST exemption to food preparations of millet flour (powder form) containing at least 70% millets by weight, provided they are not pre-packaged and labelled.

Q2: From when is Notification 18/2023 applicable?

Answer:
The notification is effective from 20th October 2023.

Q3: What product qualifies under this GST exemption?

Answer:
Only food preparations of millet flour in powder form with ≥70% millets by weight that are not pre-packaged and labelled qualify for the GST exemption.

Q4: What is the impact of this notification on millet-based food producers?

Answer:
It benefits small-scale and bulk producers by making such millet-based food items more affordable and competitive due to zero GST, encouraging millet cultivation and consumption.

Q5: Does the exemption apply to pre-packaged millet flour products?

Answer:
No. Pre-packaged and labelled millet flour products are not exempted under this notification.

Q6: How does this relate to the International Year of Millets?

Answer:
The exemption aligns with the Government of India’s focus on promoting millets, as 2023 was celebrated globally as the International Year of Millets.

Q7: Where can I get help registering or updating my GST compliance based on this change?

Answer:
You can consult GST professionals at Finodha by visiting: 🔗 Finodha GST Expert

Q8: Is this change relevant for MSMEs and agri-startups dealing in millets?

Answer:
Absolutely! MSMEs involved in millet production or distribution can save significantly on tax costs and attract millet-conscious consumers. For startup registration, check 🔗 Setup Business with Finodha

Q9: How do I know if my product is exempt or not under this rule?

Answer:
If your millet-based product is in powdered form, not pre-packaged/labelled, and has at least 70% millet content by weight, it qualifies. Consult professionals for classification at 🔗 GST Compliance Support