The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today ( 21st December 2024 ) at Jaisalmer, Rajasthan.The Council has suggested lowering the GST rate from the current 18% to 5%, regardless of the final use, in order to streamline the taxation of fortified rice kernels.
The reduction of the GST rate on fortified rice kernels ( FRK ) to 5% is a significant policy move aimed at promoting nutritional enhancement and addressing malnutrition in India.
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To address nutritional inadequacies, especially in disadvantaged populations, FRK rice grains are fortified with vital micronutrients such as iron, folic acid, and vitamins. To create fortified rice that may be distributed through charity programs, these kernels are combined with ordinary rice.
FRK now has a GST rate of 5% instead of 18% (or a higher applicable rate). It is anticipated that this decrease will increase the cost-effectiveness of producing and distributing fortified rice. This served to further the government’s goal of enhancing nutritional and health outcomes through initiatives like Poshan Abhiyaan. Through programs like the Public Distribution System ( PDS ), Mid-Day Meal Scheme, and Integrated Child Development Services ( ICDS ), this modification has made it easier to distribute fortified rice at a reasonable cost. It will lower manufacturers’ overall costs and promote widespread adoption by interested parties.
This modification will save expenses for manufacturers and implementing agencies, promoting broad use. In the end, this helps with initiatives to reduce anemia and other population-level micronutrient deficiencies. This modification promotes investment and output in facilities that produce fortified rice kernels.
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Corresponding with India’s dedication to the Sustainable Development Goals ( SDGs ) of the UN, particularly those pertaining to nutrition and hunger, this will encourage development and innovation in the food processing and fortification sector. This tax break supports government programs aimed at lowering malnutrition and micronutrient deficiencies while simultaneously improving public health and economic accessibility.
The Union Minister of State for Finance M.P.P. Chaudhary with newly appointed Revenue Secretary Ajay Seth also participated in the meeting.
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