Important Keyword: Notification No. 21/2023 - Integrated Tax (Rate), IGST on millet flour, GST millet exemption, GST notification millet, Integrated Tax Rate update, GST Council, millet GST benefit, Notification 2/2017 amendment, Finodha GST help,
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Table of Contents
[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 19th October, 2023
Notification No. 21/2023 - Integrated Tax (Rate): Seeks to amend Notification No 02/2017- Integrated 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 6 of the IGST Act, 2017 (13 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-Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 667(E), dated the 28th 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 20th day of October, 2023.
Vikram Wanere
Under Secretary
Note: - The principal notification No.2/2017- Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 667(E)., dated the 28th June, 2017 and was last amended by notification No. 04/2023 – Integrated Tax (Rate), dated the 28th February, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 151(E)., dated the 28th February, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 21/2023 - Integrated Tax (Rate)
Q1: What is Notification No. 21/2023 - Integrated Tax (Rate) about?
Answer:
This notification amends the earlier Notification No. 2/2017 - Integrated Tax (Rate) to exempt Integrated GST (IGST) on millet flour products containing at least 70% millets by weight, provided they are in powder form and not pre-packaged and labelled. The change aims to encourage consumption of millets, aligning with public interest and nutrition goals.
Q2: From which date is the exemption under Notification No. 21/2023 effective?
Answer:
The exemption is effective from 20th October 2023.
Q3: Which products are covered under S. No. 94A of the amended schedule?
Answer:
S. No. 94A covers food preparations of millet flour in powder form, with at least 70% millet content by weight. However, this exemption applies only if such products are not pre-packaged and labelled.
Q4: Is IGST applicable on pre-packaged millet flour with 70% millet?
Answer:
Yes, IGST continues to apply if the millet flour is pre-packaged and labelled, even if it contains 70% or more millet.
Q5: Why was this amendment introduced by the CBIC?
Answer:
This amendment promotes the consumption of millet-based foods as part of India’s “Shree Anna” millet initiative and ensures tax relief on healthy, unpackaged millet-based products.
Q6: How does this affect traders or manufacturers of millet flour?
Answer:
Businesses dealing in loose millet flour (not pre-packaged/labelled) benefit from tax exemption under IGST. However, they must ensure product classification meets the 70% millet threshold.
Q7: Can I consult a GST expert for classification or compliance help?
Answer:
Absolutely! You can reach out to a certified GST expert via www.Finodha.in or use their services like GST Registration, GST Return Filing, or GST Compliance.
Q8: What is the HSN code of the millet flour mentioned in Notification 21/2023?
Answer:
The applicable HSN code is 1901, which includes food preparations of cereals and flours, under which millet flour-based products fall.
Q9: Is this benefit applicable for exports or only domestic supply?
Answer:
The exemption under this IGST notification is generally applicable to domestic inter-state supplies, but exporters may also benefit subject to applicable zero-rated supply provisions.
Q10: Where can I view the original Gazette notification for reference?
Answer:
You can access it via the official CBIC site or consult Finodha’s expert team for a breakdown. Alternatively, reach out to Finodha for tailored compliance help: https://finodha.in/gst-compliance/.
🎯 Bonus Insight:
🧠 Did you know India declared 2023 as the International Year of Millets? This move to exempt IGST on millet-based products complements national dietary and agricultural priorities.
✅ Still unsure if your millet product qualifies for IGST exemption?
Consult our trusted professionals now 👉 https://finodha.in/online-gst-registration/
Download PDF: Notification No. 21/2023 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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