GST Rate Hike: GST has been implemented on many food items from today, that is, from July 18. These include pre-packaged and labeled unbranded food items like pulses, rice, flour, all cereals including wheat. 5% GST has been imposed on them. Till today, the purchase of these goods which were outside the purview of GST will attract 5% GST. Although the government has clarified that even now such things are packed in sacks or packs above 25 kg, then GST will not be applicable on them. The Union Finance Ministry has also issued a clarification regarding this.

In the 47th meeting of the GST Council, the decision to increase the GST rate on many pre-packaged food items has come into effect from Monday 18 July. From today many packaged food items are going to be expensive. These include everything packaged or packaged cereals, flour, curd, buttermilk, etc., if the content is less than 25 kg. Now pre-packaged and labeled food items such as flour, pulses, paneer and curd etc. will be costlier only those food items, whose packing is less than 25 kg, 5 percent Goods and Services Tax (GST) will be payable on them.

GST will not be payable on food items packing more than 25 kg. Retail traders have come under the ambit of GST while wholesale traders are not under the ambit of GST. In the notification issued late night by the GST Council, it has been said that the food items sold in bulk, if they are in packing of more than 25 kg, then GST will not be levied on it. It was also said in the briefing of the GST Council that only pre-packaged, pre-labeled goods weighing less than 25 kg would be liable to GST. Now the confusion regarding this has been cleared by issuing its notification.