All retail packs of packaged goods brought under GST
18 Jul 2022
Beginning today, all packages of pre-packed and labelled food items like cereals, pulses and flour weighing less than 25 kg will attract a GST levy of 5 per cent.
Last week, the government had notified that from 18 July, unbranded pre-packed and labelled food items would attract 5 per cent Goods and Services Tax. So far, only branded items used to attract the levy.
Subsequently, pre-packaged commodities supplied in packages containing quantity equal to or more than 25 kilogram will be exempt from GST.
Unpacked, unlabelled and unbranded goods continue to remain exempt from GST.
The new GST rates on a number of items will come into effect from 18 July. The 47th meeting of the GST Council approved changes to the tax structure, removing a bunch of items from the list of items exempted from the ambit of the unified tax structure.
The government today notified changes relating to GST rate, which are in line with the recommendations made by the GST Council in its 47th meeting.
The main change is moving from imposition of GST on specified goods when bearing a registered brand or brand in respect of which an actionable claim or enforceable right in a court of law is available to imposition of GST on such goods when “pre-packaged and labelled”.
For example, items like pulses, cereals like rice, wheat, and flour (aata), etc, earlier attracted GST at the rate of 5 per cent when branded and packed in unit container. Effective today (18 July 2022(, these items would attract GST when “prepackaged and labelled”.
Food products:
A uniform 5 per cent rate of GST will be charged on pre-packed and labelled meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost.
Fruits:
GST at the rate of 12 per cent will now be charged on all forms of mango, including mango pulp (other than mangoes sliced, dried). Raw or fresh mangoes continue to be exempt.
Cheque books, hotel rooms, diamonds:
GST at the rate of 18 per cent fee will be charged by banks for issuing cheques (loose or in book form).
GST at 12 per cent on hotel rooms below Rs1,000 per day will be levied, as against a tax exemption currently.
Maps and charts, including atlases, will attract a 12 per cent levy.
GST on e-waste increased to 18 per cent from earlier rate of 5 per cent.
LED lamps, inks, knives, blades, power-driven pumps and dairy machinery’s GST to be raised to 18 per cent from 12 per cent.
Tax on milling machinery for cereals will be increased to 18 per cent from 5 per cent.
GST on solar water heater, finished leather will be increased to 12 per cent.
GST on specified goods for petroleum will be increased to 12 per cent from 5 per cent on input goods to correct inversion.
GST on work contract services supplied to government, local authorities will be 18 per cent.
GST on cut, polished diamonds increased from 0.25 per cent to 1.5 per cent.
Transport of goods and passengers by ropeways to attract 18 per cent GST, up from 5 per cent (with ITC of services).
Renting of truck/goods carriage where cost of fuel is included to attract per cent GST, up from 12 per cent. In case of services, following exemptions are being rationalised:
- Exemption on transport of passengers by air to and from NE states and Bagdogra is being restricted to economy class;
- GST exemption on a host of products and services has been removed;
- Transportation by rail or a vessel of railway equipment and material;
- Storage or warehousing of commodities which attract tax (nuts, spices, copra, jaggery, cotton etc);
- Fumigation in a warehouse of agricultural produce;
- Services by RBI,IRDA,SEBI,FSSAI, GSTN’
- Renting of residential dwelling to business entities (registered persons);
- Services provided by the cord blood banks by way of preservation of stem cells;
- Room rent (excluding ICU) exceeding Rs5,000 per day per patient charged by a hospital shall be taxed to the extent of the amount charged for the room at 5 per cent, without ITC;
- Application fee charged for entrance or for issuance of eligibility certificate for admission or issuance of migration certificate by universities is exempt from GST.
Due to ambiguity in GST rates on supply of ice cream by ice-cream parlours, GST charged at 5 per cent without ITC on the same during the period 1 July 2017 to 5 October 2021 shall be regularised to avoid unnecessary litigation.
The GST on tetra pack too would be hiked to 18 per cent from 12 per cent at present.