India: 5% GST to be levied on pre-packed and labelled food items like curd, paneer, wheat

Pre-packed and labelled food items like meat, fish, curd, paneer and honey will now come under the purvey of the GST, attracting a 5 per cent tax, a GST panel headed by Union Finance Minister Nirmala Sitharaman announced.

The recommendation came from the Group of Ministers from states during the 47th meeting of the GST Council on Tuesday, seeking withdrawal exemptions with a view to rationalising the levy.

Below these items have been brought under the purview of GST if they are labelled

Add WION as a Preferred Source

1.Pre-packet and labelled meat (except frozen)

2.Fish

3.Curd

4.Honey

5.Dried leguminous vegetable

6.Dried makhana

7.Wheat and other cereals

8.Wheat or meslin flour.

9.Jaggery

10.Puffed rice.

Moreover, an 18 per cent GST will be imposed on fee charged by banks for the issue of cheques (loose or in book form), while 12 per cent GST will be levied on maps and charts including atlases.

Goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST.

Apart from that, hotel rooms with rent below Rs 1,000/day will attract 12 per cent GST.

The GST Council has also approved the correction of the inverted duty structure on several items including edible oils, coal, LED lamps, printing ink, knives and solar water heaters.

GST rate rationalisation is important to boost the weighted average GST rate that has fallen to 11.6 per cent against 14.4 per cent at the time of launch.

On Wednesday, the Council will likely discuss the contentious issue of extension of compensation paid to states for revenue lost from their taxes such as sales tax (VAT) being subsumed into a national GST beyond June 2022 and 28 per cent tax on casinos, online gaming and horse racing.

WATCH WION LIVE HERE