- Govt exempted GST on several food items
- However, these items will attract GST if cold pre-packed or labelled
- A total of 11 items have been exempted from GST
GST Update: The Goods and Services Tax (GST) Council has exempted from GST a number of items of daily use in the food category if they are sold loose. These items however will only attract GST when sold pre-packed or pre-labeled.
The information was shared by Union Finance Minister Nirmala Sitharaman.
Earlier, AAP-led Delhi government demanded the Centre to withdraw the GST it has freshly imposed on pre-packed and labelled food items, citing “steep price rise” in the country.
A 5 per cent GST rate on pre-packed and labelled food items such as cereals, pulses and flour weighing less than 25 kg kicked in on Monday.
"The entire country is facing a steep price rise and the Centre has increased the cost of food items by imposing GST on them. I demand the Centre to withdraw it," Kejriwal told reporters.
Delhi is the only state in the country that is providing relief to people from price rise by providing them health, education, water, electricity, travel and other basic facilities free of cost, he said.
Delhi government through its various welfare schemes is enabling a saving of around Rs 10,000-15,000 per month for families living in the national capital, Kejriwal claimed.
According to the Union finance ministry, GST would apply on “such specified goods where the pre-packaged commodity is supplied in packages containing a quantity of less than or equal to 25 kilograms".