GST Council to discuss rate cut on pencil sharpeners, millet products

GST

The Goods and Services Tax Council in its 49th meeting to be held on February 18 is likely to discuss reduction of rates on some items, including pencil sharpeners and millet-based health products, sources said.

“The Fitment Committee has recommended that the GST rate on pencil sharpeners may be reduced from 18 percent to 12 percent, which will be discussed at the Council meet on February 18,” a person aware of the development said.

The Council in its 47th meeting had increased the rate on pencil sharpeners to correct the inverted duty structure. However, some of the Council members asked to re-look at the decision as these were mostly used by school children.

The Council is also likely to discuss reducing the GST rate on millet-based health products which contain at least 70 percent millets.

Millet-based health products attract 18 percent GST levy now. Since the United Nations is celebrating the international year of millets in 2023, the fitment committee has recommended to slash the rate to nil if any millet-based health mix consisting at least 70 percent millets is sold in loose form and 5 percent, if it is sold in pre-packaged and labelled form, sources said.