India rice mills seek removal of GST on branded rice.

Implementation of GST has not gone well for many rice millers, especially those who produce branded rice in the southern States. Chairman of All India Rice Millers’ Federation, said that earlier, some States had nil tax on rice while some had 5% tax. Under GST, there is no tax on rice and hence, prices have come down in many places. However, branded rice, which is just 2% to 3 % of the market, attracts a 5% rate. We have sought bringing branded rice also under 0% GST. Similarly, rice bran sold for solvent purposes attracts 5% GST while there is no tax on bran meant for cattle or poultry feed. More than half the volume goes to the feed industry. GST on bran should be removed.