Edible oil industry body SEA on Thursday welcomed the GST Council’s decision to impose 5 per cent Goods and Services Tax (GST) on deoiled rice bran, saying this will discourage the use of the produce for feed purpose. At present, about 5 per cent GST is applicable on rice bran (before oil extraction) and crude rice bran oil.

“This is a welcome step and would discourage the diversion of rice bran directly into animal feed thereby, encourage higher processing of rice bran to produce rice bran oil in country,” Solvent Extractors’ Association of India (SEA) Executive Director B V Mehta said in a statement.

Also, this will simplify the structure, prevent diversion and unfair trade practice and ease of doing business, he said. On April 28, the GST Council decided to recommend the finance ministry the imposition of 5 per cent GST on deoiled rice bran.

SEA had been demanding imposition of GST on deoiled rice bran since four years.