- From today, the provision of GST applied on specified goods bearing a registered brand name changes to 'pre-packaged and labelled' commodities.
- To put simply, items such as pulses, cereals like rice, wheat, and flour previously attracted a 5 per cent GST when branded and packed. But now food items would attract GST and will be put under the 'pre-packaged and labelled' category.
- However, GST would be applied to packaged food items weighing up to 25 kg/25 litre. Above the 25 kg/25 litre limit, there will be no GST.
- "If several packages intended for retail sale to the ultimate consumer, say 10 packages of 10 kg each, are sold in a larger pack, then GST would apply to such supply. However, a package of say rice containing 50 kg (in one individual package) would not be considered a pre-packaged and labelled commodity for the purposes of GST levy," the Finance Ministry clarified.
- Also, if goods are purchased in packages of up to 25 kg/25 litre by a retailer and then sold in loose quantities, "such supply by retailer is not a supply of packaged commodity for the purpose of GST levy," the ministry further mentioned. The ministry said for the purpose of GST, pre-packaged commodity would mean a commodity which, without the purchaser being present, is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity.
- The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state FMs, had last month decided that pre-packed and labelled food items would attract 5 per cent GST from July 18.
- In addition, GST on paper knives, spoons, forks, ladles, skimmers, cake-servers increased from 12 per cent to 18 per cent.
- GST on power driven pumps such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps, bicycle pumps raised from 12 per cent to 18 per cent. LED Lamps, lights and fixture, their metal printed circuits board will also witness a GST increase from 12 per cent to 18 per cent. GST on solar water heater increased from 5 per cent to 12 per cent.
- Hotel accommodation priced up to Rs 1,000 per day will be taxed at 12 per cent. Room rent (excluding ICU) exceeding Rs 5,000 per day per patient charged by a hospital will be taxed to the extent of amount charged for the room at 5 per cent without ITC (input tax credit).
- Meanwhile, tax on transport of goods and passengers by ropeways reduced from 18 per cent to 5 per cent. Also, renting truck or goods carriage, where the fuel cost is included, will be cheaper as the tax is cut from 18 per cent to 12 per cent.
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