Pre-packed labelled pulses and flour to attract 5% GST from tomorrow- clarifies govt

Pre-packed labelled pulses and flour to attract 5% GST from tomorrow- clarifies govt

Subject :Economy

Section: Fiscal Policy

Context: The Central Board of Indirect Taxes and Customs said single packages of food items like cereals, pulses and flour weighing up to 25 kg will be considered as ‘prepackaged and labelled’, and liable to five per cent GST from July 18.

Concept:

• Pre-packaged commodity would mean a commodity which, without the purchaser being present, is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre- determined quantity
• In the context of food items (such as pulses, cereals like rice, wheat, flour etc), the supply of specified pre-packaged food articles would fall within the purview of the definition of ‘pre-packaged commodity’ under the Legal Metrology Act, 2009, if such pre-packaged and labelled packages contained a quantity up to 25 kilogram (or 25 litres).
• 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

What is the GST Council?

• The Goods and Services Tax regime came into force after the Constitutional (122nd Amendment) Bill was passed by both Houses of Parliament in 2016
• The GST Council is a joint forum of the Centre and the states. It was set up by the President as per Article 279A (1) of the amended Constitution
• The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre. Each state can nominate a minister in-charge of finance or taxation or any other minister as a member
• It is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws
• It also decides on various rate slabs of GST
• Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST and recommendations of the Council

Legal Metrology Act, 2009

• The Act aims to establish and enforce standards of weights and measures, regulate trade and commerce in weights, measures and other goods which are sold or distributed by weight, measure or number and for matters connected therewith or incidental thereto.
• The Acts is regulated and administered by the Ministry of Consumer Affairs, Food and Public
• The Legal Metrology (Packaged Commodities), Rules 2011 are primarily intended to ensure that the consumers are able to make informed choices by being informed of essential declarations on the pre-packed commodities.