GST has played a very vital role in making the new taxation slabs in India that kept the economy under the control of the government. This precisely undertakes that the Good & Service Tax would make the most of the nation’s taxation slab that governs that all the businesses and income generators pay their part of the contribution to the nation in the form of Tax.
As the notion of GST is getting hyped, the taxation slabs are now set to include the unbranded food products which briefly include rice, wheat, and flour that is a part of the regular intake the consumers across the nation. The single-packed food will not be exempted from the GST wherein the tax slab percentage is yet to decide. The Central Board of Indirect Taxes and Customs issued an FAQ on Sunday clarifying every report and query regarding the new tax slabs and GST rule under the institution.
The report came into the limelight last week, when the Central Government on the evening of July 18, said that all the unbranded pre-packed and labeled foods will be included under the Goods and Service Tax. Earlier the tax percent was decided to be taken up to 5% of total GST for all the unbranded and labeled food packages. Nonetheless, the council of the institution came up with a solution and an amendment to this; that only pre-packed items which are up to 25 kg of weight will be included in the 5% GST taxation. The packaged items which weigh above 25 kg will be exempted from the GST taxation levy.
It also added that, if a retailer supplies or sells any item in a loose quantity from a manufacturer or a distributor in a 25 kg package, then it would not attract the GST slab and they will not be liable to pay any kind of taxation. As per the FAQs that are given by the government, the pre-packaged food items that are rice, wheat, and flour would fall under the definition of ‘pre-packaged’ commodity that comes under the Legal Metrology Act, 2009. The CBIC stated in an issued statement that, a 25 kg pre-packed item would mean that it would retailed sale to the end consumer and therefore he/she shall be liable to be exempt from the levy of the GST.
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