Amid Uproar, Govt Exempts THESE Items From GST Purview When Sold Loose | Full List

Responding to the criticism, Finance Minister Nirmala Sitharaman, in a series of tweets, said the 5 per cent tax is being levied on wheat flour and other items after a nod from all states, including non-BJP ruled states.

By Talibuddin Khan
Tue, 19 Jul 2022 05:29 PM IST
Minute Read
Amid Uproar, Govt Exempts THESE Items From GST Purview When Sold Loose | Full List
A generic image of GST.

Amid the uproar over the Goods and Services Tax (GST) levied on daily use items including cereals, pulses, flour, curd etc, the government on Tuesday shared the list of items which will not attract 5 per cent GST when sold loose and not pre-packed or pre-labelled. Responding to the criticism, Finance Minister Nirmala Sitharaman, in a series of tweets, said the 5 per cent tax is being levied on wheat flour and other items after a nod from all states, including non-BJP ruled states.

Sharing the list of exempted items, Sitharaman, who is the chairperson of the GST Council, wrote, "The @GST_Council has exempt from GST, all items specified below in the list, when sold loose, and not pre-packed or pre-labelled. They will not attract any GST. The decision is of the @GST_Council and no one member".

List of items exempted from GST Purview when sold loose:

Pulses

Wheat

Rye

Oats

Maize

Rice

Flour

Suji/Rawa

Besan

Puffed rice

Curd/Lassi

In a series of tweets, Sitharaman said states levied sales tax or VAT on foodgrains in the pre-Goods and Services Tax (GST) regime and the present levy on cereals, pulses, flour, curd and lassi is an exercise to curb tax leakage. The decision, she said, was taken by the GST Council, where all states are represented, through a consensus.

The minister's comments come against the backdrop of the first two days of the monsoon session of Parliament virtually getting washed away due to vociferous protests by Opposition parties over the GST on daily use items and other issues.

Earlier, the GST Council levied a 5 per cent GST on these food items when supplied "pre-packaged and labelled". However, this was amended to tax only such items which were sold under a registered brand or brand on which enforceable right was not foregone by the supplier, the finance minister said.

"It is in this context that the GST Council in its 47th meeting took the decision. With effect from July 18, 2022, only the modalities of imposition of GST on these goods was changed with no change in coverage of GST except 2-3 items," she said.

"For example, items like pulses, cereals like rice, wheat, and flour, etc, earlier attracted GST @ 5% when branded and packed in unit container. From 18.7.2022, these items would attract GST when 'pre-packaged and labeled'," she said.

The changes were recommended by the GoM and were "carefully considered this proposal, taking into account the tax leakage," she said. "To conclude: this decision was a much-needed one to curb tax leakage. It was considered at various levels including by officers, the Group of Ministers, and was finally recommended by the GST Council with the complete consensus of all members," Sitharaman added."

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