NEW DELHI: Hours before a revision in GST rates, the Central Board of Indirect Taxes and Customs (CBIC) chose to issue detailed clarifications on the 5% levy on unbranded and packed food items that kicks in from Monday. Non-ICU hospital rooms that cost over Rs 5,000 a night as well as packed curd and paneer will also attract GST from Monday.
Although the decision was taken over a fortnight ago, CBIC waited until Sunday to clarify that 5% GST on these food items, like pulses, flour and rice, will not apply in case the pack size is over 25kg. The tax will be applicable if it is “pre-packaged” and bears declarations under the provisions of the Legal Metrology Act.
“Supply of pre-packed atta meant for retail sale to the ultimate consumer of 25kg shall be liable to GST. However, supply of such a 30kg pack thereof shall be exempt from levy of GST,” the CBIC said in a set of FAQs. Besides, if the retailer opens the pack and sells it loose, GST will not apply on the sale, although the tax would apply when the product is sold by the manufacturer and distributor.
Further, supply of packaged commodities for consumption by industrial or institutional consumers is excluded from the purview of the Legal Metrology Act.
Although the decision was taken over a fortnight ago, CBIC waited until Sunday to clarify that 5% GST on these food items, like pulses, flour and rice, will not apply in case the pack size is over 25kg. The tax will be applicable if it is “pre-packaged” and bears declarations under the provisions of the Legal Metrology Act.
“Supply of pre-packed atta meant for retail sale to the ultimate consumer of 25kg shall be liable to GST. However, supply of such a 30kg pack thereof shall be exempt from levy of GST,” the CBIC said in a set of FAQs. Besides, if the retailer opens the pack and sells it loose, GST will not apply on the sale, although the tax would apply when the product is sold by the manufacturer and distributor.
Further, supply of packaged commodities for consumption by industrial or institutional consumers is excluded from the purview of the Legal Metrology Act.
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