Starting today, 5% GST on packaged cereals, pulses, flour weighing upto 25 kg

Starting today, a five per cent GST (goods and services tax) will be levied on packed and labelled food items such as cereals, pulses and flour weighing upto 25 kg. This was stated in a detailed FAQ (frequently asked questions) compiled by the Union Finance Ministry. Unbranded food items – from cereals, pulses to curd, “lassi” and puffed rice will also be taxed, where earlier, only branded items were levied.

The provision of GST applied on specified goods bearing registered brand name will change to “pre-packaged and labelled” commodities. Above 25 kg/litre limit, there will be no GST. However, if goods are purchased in packages of up to 25kg/litre by a retailer and sold in loose quantities, “such supply by retailer is not a supply of packaged commodity for the purpose of GST levy”, the ministry mentioned. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and including state finance ministers, had last month decided that pre-packaged and labelled food items would attract 5 per cent GST from July 18.

Also, GST on paper knives, spoons, forks, ladles, skimmers, cake servers increased from 12 per cent to 18 per cent. Hotel accommodation up to Rs 1,0000 per day will be taxed at 12 per cent, while 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 input tax credit (ITC).