On the recommendations of the Group of ministers, some amendments to the GST rate have been taken in the 47th official meeting. Members of GoM belong from 7 states and the suggestions were incurred by the council, which consists of members from states and the centre.
The government sources articulated that the rate of tax would not exceed the pre-GST regime. For instance, a 6% tax is being imposed on the items like honey, tea, milk powder, sugar, and spices whereas rice and wheat secure a 2.75% tax along with 2.5% correspondingly.
Repackaged and pre-labelled food items are being taxed in the pre-GST VAT system however this is being refused by the government and instead, they said that these are being taxed for the very first time.
GST official 47th counselling meeting held in the former month, the council runs a series of amendments in the rate as the rectification part of the inverted duty structure, withdrawal of some exemptions in what could be a prototype for an overall tweaking of tax slabs and rate rationalization in the coming times.
The amendments which would be predicted to affect the consumers in a lesser way, GST exemptions would be withdrawn from the pre-packaged and labelled retail packs would consist of the food items such as curd, lassi, puffed rice, wheat flour, and buttermilk, but there the exemption will be maintained on the sold loose or unlabelled. The change in the rate would come into force from 18th July.
There is a change in the inverted duty structure to 18% from 12% on the household items such as LED lamps, printing/drawing ink, power-driven pumps, and Tetra Pak, towards solar water heaters and for cut and polished diamonds is levied with 1.5 per cent increased from 0.25 per cent.
The Central Board of Indirect Taxes and Customs (CBIC) has circulated a set of FAQs that mentioned that the GST would be applicable on a single package of the food items such as cereals, pulses, and flour whose weight is up to 25kg which is being acknowledged as ‘prepackaged and labelled’ including those whose weight is 25 kg shall not be levied with the tax.
GST shall be applicable on the package which consists of various retail packages for instance a package composing 10 retail packs of flour of 10kg each.
The statement has been given by the opposition with respect to the GST rise on household items.
