Notification No. 18/2023 - UTT(R): UTGST on Millet Flour

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Notification No. 18/2023 - Union Territory Tax (Rate): Seeks to amend Notification No 02/2017- Union Territory 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 8 of the UTGST Act, 2017 (14 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-Union Territory (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. 711(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- Union Territory 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. 711(E)., dated the 28^th June, 2017 and was last amended by notification No. 04/2023 – Union Territory 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. 152(E)., dated the 28^th February, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 18/2023 - Union Territory Tax (Rate)

Q1: What is Notification No. 18/2023 - Union Territory Tax (Rate) all about?

Answer: Notification No. 18/2023 - Union Territory Tax (Rate), issued by the Ministry of Finance on 19th October 2023, amends Notification No. 2/2017-UT Tax (Rate) to insert a new entry in the GST Schedule. It introduces a GST exemption for food preparation made of millet flour (in powder form) with at least 70% millets, provided it is not pre-packaged and not labelled. 📦❌

Q2: When did Notification No. 18/2023 come into effect?

Answer: This notification came into force on 20th October 2023. It reflects the GST Council’s recommendations aiming to promote millet-based nutrition and support farmers. 🌾📆

Q3: What item was added in the updated UTGST schedule?

Answer: A new entry — S. No. 94A — was added, covering:
"Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labelled."
This ensures such millet-based preparations are tax-free under Union Territory GST, promoting healthy food choices. 🥣

Q4: Why was this amendment made?

Answer: The government made this change in the public interest to boost millet consumption, support rural agribusiness, and align GST policy with health and sustainability goals recommended during the 50th GST Council meeting. 🌍🌱

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

Answer: ❌ No. The exemption does not apply to pre-packaged and labelled millet flour products. Such items remain taxable under existing GST rules. Ensure packaging complies to claim tax benefits.

Q6: Where can I get help with UTGST classification or compliance?

Answer: You can consult GST Professionals at Finodha.in for guidance. Whether it's classification, GST return filing, or food business compliance, expert help is just a click away! 💼
🔗 Helpful links from Finodha:
GST Compliance Help: https://finodha.in/gst-compliance/
GST Registration: https://finodha.in/online-gst-registration/
GST Return Filing: https://finodha.in/gst-return-filing/
Business Setup: https://finodha.in/setup-business/

Q7: How does this relate to the previous UTGST notification (No. 2/2017)?

Answer: This amendment adds to the list of exempt items in Notification No. 2/2017-UT Tax (Rate). It follows up on a trend of promoting traditional and sustainable food alternatives through favorable tax treatments. 🍽️

Q8: Are there any similar exemptions for other millets or cereal products?

Answer: Yes, similar exemptions may be available for products based on weight composition and packaging. You should refer to the latest GST notifications or consult Finodha’s GST Experts to evaluate specific classifications. 📋✅