New Delhi/Bhubaneswar: Odisha Finance Minister Bikram Keshari Arukha batted for a reduction of GST rate on millet-based products at the 52nd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman held in New Delhi today.
At the meeting, Arukha pointed out that Odisha is the pioneer state for the promotion of millets through the Millet Mission. The Government of India has asked all states to adopt the Odisha Millets Mission model for the promotion of millets, he added.
The Odisha Finance Minister stated that the reduction of the GST rate on millet-based products can have a significant positive impact on the Odisha Millet Mission.
He said by reducing the GST rate 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, he added.
Exemption of GST on millet-based health mix consisting of at least 70 per cent 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, he further pointed out.
Moreover, the reduction of the GST Rate will fulfil the demand for ensuring economic stimulus to entrepreneurs engaged in the production of millet-based health mix, he explained.
Arukha also stated that Odisha submitted a proposal for exemption of GST on services offered by DMF Trust.
He informed that the Fitment Committee examined the State government’s 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 the implementation of High Priorities activities and other priorities activities for socio-economic development and welfare of the people in mining-affected areas, he added. He pointed out that these activities undertaken by the DMF Fund are mostly in relation to activities enlisted in the Eleventh Schedule [Article 243g] and Twelfth Schedule [Article 243w] of the Constitution of India.
The aforesaid Rule envisages supplementing and complementing the existing infrastructure of local bodies and ensuring convergence with Local self-government by participating the members of local bodies in the DMF Trust, he added.
Arukha said that 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 individuals, women, children and families of mining-affected areas who avail of these services free of charge, he added.
The Odisha Finance Minister stated that 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.
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.
He said, 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 the Government Authority as per the recommendation of the 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 No. 12/2017-CT(R) Dated 28.06.2017.
Considering the above points Finance Minister Arukha stressed on exemption of GST on services offered by DMF Trust.
Finance Ministers from different States participated in the meeting.
Principal Secretary, Finance Vishal Kumar Dev and GST Commissioner Sanjay Kumar Singh also attended the 52nd GST Council meeting.
