FM explains, No GST on food items when sold loose

By Our Special Correspondent

In a series of tweets, the Minister explained the new rates of GST that came into effect from Monday. The decision was taken after Lok Sabha proceedings were adjourned on Tuesday amid opposition protests over GST rates and price hike.

The list includes items like pulses/dal, wheat, rye, oats, maize, rice, atta/flour, semolina/rava, besan, puffed rice and curd/lassi.

In a series of tweets, the Minister explained the new rates of GST that came into effect from Monday. The decision was taken after Lok Sabha proceedings were adjourned on Tuesday amid opposition protests over GST rates and price hike.

Sitharaman in his tweets defended the imposition of 5 per cent GST on food items and said the GST Council had taken the decision unanimously and all states were present in the GST Council meeting in June when the group of ministers on rationalization of rates presented the issue 28, 2022.

She said that no state opposed bringing pre-packaged commodities under GST in the 47th GST Council.

She said this is not the first time such food items have been taxed. "In the pre-GST regime, states were collecting substantial revenue from foodgrains. Punjab alone levied a purchase tax on food grains of Rs. It collected more than 2,000 crores. UP collected 700 crores.

Explaining GST, he said that when GST came into effect, 5 percent GST rate was applied on branded cereals, pulses and flour. Later it was amended to levy tax only on goods sold under a registered brand or brand, where the supplier has not waived an enforceable right over them.

“Suppliers and industry associations who pay taxes on branded goods have expressed their ire. A letter has been written to the government to impose uniform GST on all packaged commodities to curb such misuse. States have also noticed this rampant tax evasion," Sitharaman said in a tweet.

"In this context, the GST Council took this decision in its 47th meeting. With effect from July 18, 2022, only the procedures for levying GST on these items have been changed, there is no change in GST coverage except for 2-3 items,” she said.