‘GST on unbranded food packs a good move’

New Delhi A top executive of Adani Wilmar Ltd said organized players are set to benefit from the government’s move to tax non-branded, pre-packaged food products like rice, wheat and flour, as it provides an equal opportunity in the market. produces.

“When it comes to food, the GST (Goods and Services Tax) rule is in force today. We have been waiting for this for the last five years. Now our market (above) will open. The market for branded staples will open up in a big way. Adani Wilmar chief executive Angshu Malik said, a large number of brands in small towns, rural markets and even metros are operating and selling without GST.

After a two-day meeting on June 28 and 29, the GST Council agreed to bring a large number of food products, such as curd, lassi, paneer, honey, makhana, wheat, rice, buttermilk and puffed rice, under the tax net. , Subsequently, the central government notified that from July 18, GST will be levied on pre-packaged and labeled (unregistered brand name) goods.

However, late on Sunday, the Central Board of Indirect Taxes and Customs clarified that only one package of food items such as cereals, pulses and flour weighing up to 25 kg would be considered a ‘pre-packaged and labeled’ product, and would be taxed on it. will be imposed. 5%.

Malik said levying GST on pre-packaged and labeled staples would help the firm to penetrate deeper, especially in rural markets, where sales of packaged but un-registered product are high.

Adani Wilmar retails packaged flour, gram flour, semolina, pulses, sugar, rice and cooking oil under the Fortune brand.

“Consumers will certainly not mind paying a little extra as the delta between branded and pre-packaged items has come down significantly. It will be a big deal for our brands, Fortune and Kohinoor and other brands.”

The company is pursuing efforts to expand into rural areas by expanding its distribution to more towns and villages.

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