Explained: 5% GST on pre-packaged items of up to 25 Kg

NEW DELHI: Consumers will have to pay 5 per cent GST on pre-packed, labelled food items like atta, paneer and curd from today with the GST Council‘s decision coming into force.
This new levy is expected to fuel price inflation of basic consumable items and also widen the GST net as earlier GST levy was limited to branded food items packed in unit containers.
Single packages of unbranded pre-packed and labelled food items like cereals, pulses and flour weighing in excess of 25 kg will be exempt from 5 per cent GST levy.
For example, supply of pre-packed atta meant for retail sale to the ultimate consumer of 25 Kg shall be liable to GST. However, supply of such a 30 Kg pack thereof shall be exempt from levy of GST.
As per the FAQs, pre-packaged and labelled food items (such as pulses, cereals like rice, wheat, flour etc), would fall within the purview of the definition of ‘pre-packaged commodity’ under the Legal Metrology Act, 2009, if such packages contain a quantity up to 25 kilogram (or 25 litres).
“Thus, it is clarified that a single package of these items [cereals, pulses, flour etc.] containing a quantity of more than 25 Kg/25 litre would not fall in the category of pre-packaged and labelled commodity for the purposes of GST and would therefore not attract GST,” the government explained in a release.
Will GST would apply to a package that contains multiple retail packages? For example, a package containing 10 retail packs of flour of 10 Kg each?
Yes, if several packages intended for retail sale to ultimate consumer, say 10 packages of 10 Kg each, are sold in a larger pack, then GST would apply to such supply.
However, a package of say rice containing 50 Kg (in one individual package) would not be considered a pre-packaged and labelled commodity for the purposes of GST levy.
GST would also apply when pre-packaged and labelled package is sold by a distributor/manufacturer to a retailer purchasing food items in packages weighing up to 25 kg/25 litre. However, if for any reason, retailer supplies the item in loose quantity from such package, such supply by the retailer is not a supply of packaged commodities for the purpose of GST levy, the CBIC said.
‘X’ is a rice miller who sells packages containing 20 kg rice but not making the required declaration under legal metrology Act and the Rules made thereunder (although the said Act and the rules requires him/her to make a declaration), would it still be considered as pre-packaged and labelled and therefore be liable to GST?
Yes, such packages would be considered as pre-packaged and labelled commodity for the purposes of GST as it requires making a declaration under the Legal Metrology (Packaged Commodities) Rules, 2011 (rule 6 thereof). Hence, miller ‘X’ would be required to pay GST on supply of such package(s).
However, supply of packaged commodities for consumption by industrial consumer or institutional consumer is excluded from the purview and will not be considered as pre-packaged and labelled for the purposes of GST levy.

Source link

Related posts:

Chhattisgarh urban body polls 2021 election commission sets expenditure limit check details
Up Election 2022: Akhilesh Yadav Took A Jibe At The Chief Minister, Told In The Press Conference, Is...
Black magic won't help win trust of people: PM Modi's dig at Cong's 'black prote...
Harnaaz Sandhu trolled because of her beauty Miss Universe 2021 an - हरनाज संधू को ट्रोल्स ने कहा
How to complain about insurance policy problem or claim know detail pmgkp
Up vidhan sabha chunav 2022 zafrabad assembly seat uttar pradesh election bjp bsp sp congress
Pakistan beat west indies in 3rd T20I at Karachi babar azam and mohammad rizwan shines
Unique Case In Madhya Pradesh: There Was No Death Due To Corona In The Village Of Neemuch District L...
After nomination, Tharoor calls for 'decentralisation' in Congress, releases manifesto
Uttarakhand Election 2022: Giants Are Weighing Heavily On Claim Of Youth In Congress - Uttarakhand E...
UP Chunav Akhilesh Yadav Mubarakpur Shah Alam ticket cut, Sagdi assembly candidate nodelsp
Liquor ban in bihar sushil modi took out friend nitish kumar from political siege of bjp rjd congres...
Three-day winter session of the Vidhan Sabha begins from today | विधानसभा का तीन दिवसीय शीतकालीन सत्...
Narendra Modi will give tips of zero budget farming to farmers big bet after return of agriculture b...
Kimura disease found in udaipur woman first case in rajasthan only 200 such cases in world medical H...
BJP Congress clashed in Chhattisgarh over Pakistan Accused of giving land in Raipur to Dawat e Islam...

Leave a Comment