The Minister of Finance released a list of items that would not attract GST, when sold loosely, and not packaged or pre-label.In a series of tweets, he said: “recently, the GST council in the 47th meeting recommended to reconsider the approach for the imposition of GST on certain food items such as pulses, cereals, flour, etc. There are many misunderstandings about this that has spread . This is a thread to put facts. “
“Is this the first time food items like that have been taxed? No. Countries have collected significant income from foodgrain in the pre-gst regime. Punjab alone collects more RS 2,000 Cr on food wheat by tax purchase. Raising RS 700 Cr, “He said.
“Considering this, when the GST was launched, the 5% GST level was made applies to branded cereals, pulses, flour. suppliers, “said FM.
“However, immediately misuse of this provision was observed by producers & owners of well -known brands and gradually GST income from these goods dropped significantly. This was hated by suppliers and industrial associations that pay taxes on branded goods. They wrote to the government to impose GST Uniforms in all commodities that are packaged to stop such abuse. The rampant tax avoidance is also observed by countries. “
“Fitment Committee – consisting of officers from Rajasthan, Bengal Western, Tamil Nadu, Bihar, Uttar Pradesh, Karnataka, Maharashtra, Haryana, and Gujarat – have also examined this problem for several meetings and made recommendations to change modalities to curb misuse of use wrong use wrong use of wrong use of wrong use of its use and make recommendations to use wrong use wrong use wrong use wrong use wrong use that is wrong use.
“It is in this context that the GST council in the 47th meeting made a decision. Starting July 18, 2022, only the issuance of GST on these items was changed without changes in GST scope except 2-3 items,” the Minister said.“It has been determined that GST on these items is valid when supplied in a ‘pre-package and labeled’ commodity that attracts the provisions of the legal metrology law.”
“For example, items such as pulses, cereals such as rice, wheat, and flour, etc., previously pulled GST @ 5% when labeled and packaged in a unit container. From 18.7.2022, these items will pull GST when packaged before and Label ‘, “Tweeted Sitharaman.