New Delhi: A few hours before the amendment in GST RatesCentral Board of Indirect Taxes and Customs (CBIC) chose to issue a detailed clarification on the 5% levy on non-branded and packaged food items starting Monday. Non-ICU hospital rooms that cost more than Rs 5,000 per night, along with packaged curd and paneer will also attract GST From Monday.
Though the decision was taken a fortnight ago, the CBIC waited till Sunday to clarify that 5% GST would not be applicable on these food items like pulses, flour and rice, if the pack size exceeds 25 kg. The tax will be applicable if it is “pre-packaged” and bears declarations under the provisions of the Legal Metrology Act.
“Supply of pre-packaged flour for retail sale to the end consumer of 25 kg will be liable to GST. However, the supply of such 30 kg packs will be exempted from GST,” the CBIC said in a set of FAQs. Further, if the retailer opens the pack and sells it loose, GST will not be applicable on the sale, though the tax will be applicable when the product is sold by the manufacturer and the distributor.
Further, the supply of packaged goods for consumption by industrial or institutional consumers is kept out of the purview of the Legal Metrology Act.
Though the decision was taken a fortnight ago, the CBIC waited till Sunday to clarify that 5% GST would not be applicable on these food items like pulses, flour and rice, if the pack size exceeds 25 kg. The tax will be applicable if it is “pre-packaged” and bears declarations under the provisions of the Legal Metrology Act.
“Supply of pre-packaged flour for retail sale to the end consumer of 25 kg will be liable to GST. However, the supply of such 30 kg packs will be exempted from GST,” the CBIC said in a set of FAQs. Further, if the retailer opens the pack and sells it loose, GST will not be applicable on the sale, though the tax will be applicable when the product is sold by the manufacturer and the distributor.
Further, the supply of packaged goods for consumption by industrial or institutional consumers is kept out of the purview of the Legal Metrology Act.