CBIC Issues GST Clarifications on Prepackaged Items Starting Monday



The Central Excise and Customs Board said on Sunday that single packages of food products such as grains, pulses and flour weighing up to 25 kg will be considered “pre-packaged and labelled” and subject to a GST of 5 % from July 18.

He also clarified that if a retailer supplies the item purchased from a manufacturer or distributor in bulk in a 25 kg package, that sale to consumers will not incur GST.

The CBIC issued a series of frequently asked questions (FAQs) on Sunday evening about the applicability of GST on “prepackaged and labeled” goods, just a day before the 5% GST on such items becomes applicable.

In the context of food products (such as pulses, cereals such as rice, wheat, flour, etc.), the supply of specified pre-packaged food products would fall under the definition of “pre-packaged goods” under the law. on legal metrology. , 2009, if these prepackaged and labeled packages contained a quantity less than or equal to 25 kilograms (or 25 litres).

“It is clarified that a single package of these items (cereals, pulses, flour, etc.) containing a quantity greater than 25 kg/25 liters would not fall under the category of pre-packaged and labeled goods for GST purposes and n would therefore not attract the GST,” he said.

The CBIC has stated that the supply of pre-packaged atta for retail sale to the final consumer of 25 kg will be subject to GST. However, the supply of such a 30 kg package is exempt from the GST levy.

The board also said GST would apply on a package containing multiple retail packages, for example a package containing 10 retail packages of flour of 10kg each, the CBIC said.

For GST purposes, a prepackaged good would mean a good that, without the presence of the purchaser, is placed in a package of any kind, sealed or unsealed, so that the product therein has a quantity predetermined. .

Any such supply requiring reporting under the Legal Metrology Act would incur GST, he said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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About Charles D. Goolsby

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