Here's Your 10-Point Cheat-Sheet To This Big Story:
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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