Pre-packaged, labeled pulses, flour at 5% GST from tomorrow, clarifies govt

The Central Board of Indirect Taxes and Customs on Sunday said a single package weighing 25 kg of food items like cereals, pulses and flour will be treated as ‘prepackaged and labeled’, and liable to five per cent GST with effect from July 18.

It also clarified that if a retailer supplies a small quantity of an item purchased from a manufacturer or distributor in packs of 25 kg, then GST will not be levied on such sale to the consumers.

The CBIC on Sunday night issued a set of frequently asked questions (FAQs) on the implementation of GST on ‘pre-packaged and labeled’ goods, just a day before the implementation of five per cent GST on such items.

In respect of food articles (such as cereals like pulses, rice, wheat, flour etc.), the supply of specified pre-packaged food items falls within the definition of ‘pre-packaged commodity’ under the Legal Metrology Act. , 2009, if such pre-packaged and labeled packages contain a volume of up to 25 kg (or 25 litres).

“It is clarified that a package of these commodities (cereals, pulses, flour etc.) having a volume exceeding 25 kg/25 litres, shall not come under the category of pre-packaged and labeled commodity for the purposes of GST. Therefore will not attract GST,” it said.

CBIC said supply of pre-packaged flour for retail sale to the end consumer of 25 kg would be liable to GST. However, supply of such 30 kg pack will be exempted from GST.

The board also said that GST would be applicable on a package that includes multiple retail packages, for example a package containing 10 retail packs of 10 kg of flour, the CBIC said.

It said that for the purpose of GST, “pre-packaged commodity” shall mean a commodity which, without the presence of a buyer, is put in a package of any nature, whether sealed or not, so as to contain Pre-determined quantity of the product contained.

Any such supply which requires declaration under the Legal Metrology Act will attract GST.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.

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