Only packaged food items weighing less than 25 kg attract 5% GST. Most of the companies are now packing their goods of more than 25 kg in a single packet, so that they are exempted from levying tax in the packet.
Noida: In July, the Center imposed 5 per cent GST on unbranded labeled and pre-packaged food items weighing less than 25 kg. After this, most of the companies are now packing their goods of more than 25 kg in a single packet, so that they are exempted from levying tax in the packet. Please note that only packaged food items weighing less than 25 kg attract 5% GST.
What Officials Say
A senior official of the GST department said that the Central Board of Indirect Taxes and Customs (CBIC) had clarified that grains, such as pulses and flour weighing more than 25 kg and pre-packaged in a single packet Food items will be exempted from GST.
If a retailer buys a 25 kg packet directly from the distributor or product manufacturer and sells it in retail quantity, then the customer is saved from GST, but if a person buys a 10 kg packet from the market, then he will pay 5 percent from his pocket. pays.
Relief to traders
While imposition of GST on food items loosens the pockets of the public, a huge amount collected in the form of tax directly reaches the exchequer. However, retailers and construction companies found a way to counter the Centre’s move. Since food packets weighing more than 25 kg are not subject to GST, most of the companies are resorting to packing their goods weighing more than 25 kg in a single packet.
What did the shopkeeper say
Rakesh Singh, owner of a grocery shop in Greater Noida, said he buys bulky packets directly from companies to avoid charges. Companies selling branded cereals and pulses pack food items in packets weighing more than 25 kg and sell them at grocery stores. Customers buy these items as retail from kirana shops without any GST.
