With the implementation of GST, many food items have become expensive. These include pre-packaged and labeled unbranded food items such as pulses, rice, flour, wheat and other cereals. 5 percent GST has been imposed on these items. Earlier these goods were out of the purview of GST. The situation is that while flour and rice have become costlier by Rs 2, pulses have increased by Rs 10. Curd has also become costlier.
The new GST rate, in pursuance of recommendations made by the GST Council in its 47th meeting last month, is coming into effect from today. The Central Board of Indirect Taxes and Customs (CBIC) on Sunday issued a list of FAQs on GST applicability on pre-packaged and labelled products, clarifying that 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 5 per cent GST.
Traders in Ranchi are opposing the imposition of 5% GST on pulses and other food grains. Trader Sanjay Mahuri said that the main reason for the increase in the prices of pulses is excessive rains in the producing states, while the arrivals have been affected. There is also an impact of GST on unbranded packs.
People too are upset with the new tax imposition. Ankita Sharma, a resident of Kanke Road said, “The implementation of 5 per cent GST on food items will affect our household budget as the majority of edible items such as rice, wheat flour, pulses, oil, curd and others will become costlier.”
However, Manish Sahu, the operator of Baba Rice, said that as soon as the 30 kg bags are printed, Baba Rice will reduce the rate of Rs 150 per quintal in all its non-GST rice. Consumers will start getting its benefits in a week.
Traders said that the government has made it clear that even if such things are still packed in sacks or packs above 25 kg, then GST will not be applicable on them. The Union Finance Ministry has also issued a clarification in this regard.