GST New Rules: If Sold Loose, Tax Will Not Be Applicable On These Items
After a recent update in rules of GST on Monday, the Finance Minister said, "From 18.7.2022, these items would attract GST when pre-packaged and labeled." Read further to know which items will remain tax free.
In the midst of a commotion over putting a 5 percent GST on pre-packaged and pre-labeled things from Monday, finance minister Nirmala Sitharaman on Tuesday stated that a few items, if sold loose won't draw in any GST. These incorporate most of the things that are required on a day-to-day basis including rice, milk, lentils, etc, which are right now falling under the ambit of the Goods and Service Tax.
Sitharaman in a progression of 14 tweets said that the choice to demand charge on pre-stuffed and pre-marked things was taken by the GST Council overall and not one part. She said, "Recently, the GST Council in its 47th meeting recommended to reconsider the approach for the imposition of GST on specified food items like pulses, cereals, flour, etc. There have been a lot of misconceptions about this that have been spread."
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Items will be impacted by GST if sold in pre-packaged and labeled packets
Further, she added, "For example, items like pulses, cereals like rice, wheat, and flour, etc, earlier attracted GST @ 5% when branded and packed in a unit container. From 18.7.2022, these items would attract GST when “pre-packaged and labeled."
She also said, "It is in this context that the GST Council in its 47th meeting took the decision. With effect from July 18, 2022, only the modalities of imposition of GST on these goods was changed with no change in coverage of GST except 2-3 items."
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The list of items that will remain tax-free if they are not sold in packets and labels
- Pulses/Daal
- Wheat
- Rye
- Oats
- Maize
- Rice
- Aata/Flour
- Suji/Rawa
- Besan
- Puffed Rice
- Curd/Lassi
