BHUBANESWAR: The GST council chaired by Union Finance Minister Nirmala Sitharaman in New Delhi on Saturday clarified that District Mineral Foundations Trusts (DMFT) set up by state governments in mineral mining areas are governmental authorities and eligible for exemptions from GST as available to similar authorities.
The clarification came after Odisha government proposed the council to treat DMFT like other government authority and exempt it from GST as allowed to state governments, Central government and local authorities on expenditure on pure services/composite supply of goods and services. State’s Finance Minister Bikram Keshari Arukha said the council was requested to consider the proposal of Odisha for socio-economic development of the people in mining affected areas.
“We had submitted two proposals, including exemption of GST on services offered by DMF trust. The Fitment Committee had examined our proposal and recommended to clarify that DMFT is a governmental authority and thus eligible for the same exemptions as available to other governmental authority in the present scheme of things,” he said. In 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 and welfare of the people in mining affected districts.
Arukha also appreciated the GST council’s unanimous recommendation to slash tax on millet flour food preparations, containing at least 70 per cent millets by weight, from the current 18 per cent to five per cent if sold in pre-packaged and labelled form and zero pc if sold in other than pre-packaged and labelled form. Odisha was leading the states that have been demanding reduction of GST on millet food products with an aim to make nutritious food items more accessible to the public. Arukh said the reduction of GST rates on millet-based products will have a significant positive impact on Odisha Millet Mission as the products will be more affordable and accessible.
“This move will encourage more people to incorporate millets into their diet, leading to better health outcomes and supporting the local millet farmers. It will also help augment value-added millet products and overall development of business opportunities especially for women entrepreneurs of SHG in Odisha,” he added.Principal secretary of Finance department Vishal Kumar Dev and GST commissioner Sanjay Kumar Singh also attended the 52nd GST council meeting.