5% GST on pre-packaged items of up to 25 Kg

NEW DELHI: Consumers will have to pay 5 per cent GST on pre-packed, labelled food items like atta, paneer and curd from today with the GST Council's decision coming into force.

Changes made with respect to packaged and labelled commodity with effect from the 18th July, 2022:

This new levy is expected to fuel price inflation of basic consumable items and also widen the GST net as earlier GST levy was limited to branded food items packed in unit containers.
Single packages of unbranded pre-packed and labelled food items like cereals, pulses and flour weighing in excess of 25 kg will be exempt from 5 per cent GST levy.

For example, supply of pre-packed atta meant for retail sale to the ultimate consumer of 25 Kg shall be liable to GST. However, supply of such a 30 Kg pack thereof shall be exempt from levy of GST.
Scope of ‘pre- packaged and labelled’ for the purpose of GST levy on food items like pulses, cereals, and flours

Pre-packaged and labelled food items (such as pulses, cereals like rice, wheat, flour etc), would fall within the purview of the definition of 'pre-packaged commodity' under the Legal Metrology Act, 2009, if such packages contain a quantity up to 25 kilogram (or 25 litres).
"Thus, it is clarified that a single package of these items [cereals, pulses, flour etc.] containing a quantity of more than 25 Kg/25 litre would not fall in the category of pre-packaged and labelled commodity for the purposes of GST and would therefore not attract GST," the government explained in a release.