Srinagar, June 18: In a major unfolding development, a group of ministers (GoM), reviewing the Goods and Services Tax (GST) rates, has decided to remove exemption for packaged food items, if sold under unregistered brands.
The recommendation is on the agenda of the GST Council meet which will meet on June 28-29 in Srinagar, an official from the Finance Department confirmed to Ziraat Times.
These items will be taxed at 5%, the rate for branded food. If approved, this measure is likely to impact several unregistered food brands in J&K as well, which have traditionally being traded in the informal market.
The move is in the wake of misuse of the exemption for unbranded food by a section of the food processing industry, including rice and wheat millers, Financial Express quoted sources from the GoM meeting held on Friday.
“No tax waiver will be allowed for food items where brands are used but purportedly not being claimed,” key ministers part of the committee were quoted as saying.
