NEW DELHI: hours before a revision in GST ratesthe Central Office for Indirect Taxes and Customs (CBIC) has decided to issue detailed explanations of the 5% levy on unbranded and packaged groceries, which will come into effect from Monday. Non-ICU hospital rooms costing over Rs 5,000 a night and packaged curd and paneer will also attract GST from Monday.
Although the decision was made over two weeks ago, CBIC waited until Sunday to clarify that 5% GST on these foods such as legumes, flour and rice will not apply if the pack size is over 25kg. The tax applies if it is “pre-packaged” and bears information in accordance with the provisions of the Legal Metrology Act.
“Supply of pre-packaged Atta intended for retail sale to the final consumer of 25kg is subject to GST. However, the supply of such a 30kg pack of these is exempt from GST duty,” the CBIC said in a series of FAQs. In addition, if the retailer opens the pack and sells in bulk, GST is not payable on the sale, although the tax would be charged if the product were sold by the manufacturer and retailer.
In addition, the delivery of packaged goods for consumption by industrial or institutional consumers is excluded from the scope of the Legal Metrology Act.
Although the decision was made over two weeks ago, CBIC waited until Sunday to clarify that 5% GST on these foods such as legumes, flour and rice will not apply if the pack size is over 25kg. The tax applies if it is “pre-packaged” and bears information in accordance with the provisions of the Legal Metrology Act.
“Supply of pre-packaged Atta intended for retail sale to the final consumer of 25kg is subject to GST. However, the supply of such a 30kg pack of these is exempt from GST duty,” the CBIC said in a series of FAQs. In addition, if the retailer opens the pack and sells in bulk, GST is not payable on the sale, although the tax would be charged if the product were sold by the manufacturer and retailer.
In addition, the delivery of packaged goods for consumption by industrial or institutional consumers is excluded from the scope of the Legal Metrology Act.
