The Central Excise and Customs Board said on Sunday that single packages of food products such as grains, pulses and flour weighing up to 25 kg will be considered “pre-packaged and labelled” and subject to a GST of 5 % from July 18.
He also clarified that if a retailer supplies the item purchased from a manufacturer or distributor in bulk in a 25 kg package, that sale to consumers will not incur GST.
The CBIC issued a series of frequently asked questions (FAQs) on Sunday evening about the applicability of GST on “prepackaged and labeled” goods, just a day before the 5% GST on such items becomes applicable.
In the context of food products (such as pulses, cereals such as rice, wheat, flour, etc.), the supply of specified pre-packaged food products would fall under the definition of “pre-packaged goods” under the law. on legal metrology. , 2009, if these prepackaged and labeled packages contained a quantity less than or equal to 25 kilograms (or 25 litres).
“It is clarified that a single package of these items (cereals, pulses, flour, etc.) containing a quantity greater than 25 kg/25 liters would not fall under the category of pre-packaged and labeled goods for GST purposes and n would therefore not attract the GST,” he said.
The CBIC has stated that the supply of pre-packaged atta for retail sale to the final consumer of 25 kg will be subject to GST. However, the supply of such a 30 kg package is exempt from the GST levy.
The board also said GST would apply on a package containing multiple retail packages, for example a package containing 10 retail packages of flour of 10kg each, the CBIC said.
For GST purposes, a prepackaged good would mean a good that, without the presence of the purchaser, is placed in a package of any kind, sealed or unsealed, so that the product therein has a quantity predetermined. .
Any such supply requiring reporting under the Legal Metrology Act would incur GST, he said.
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