Kerala opposes 5 per cent GST on pre-packed, labelled food items: Finance Minister

Thiruvananthapuram: Kerala has conveyed its strong opposition to the 5 per cent GST on pre-packed, labelled food items like flour, paneer and curd, state Finance Minister K N Balagopal said in the state assembly on Monday.

He was answering queries in the House with regard to the Goods and Services Tax (GST).

Kerala, in the GST Council meetings, has taken a consistent stand that the earlier higher tax on luxury items should be brought back and there should not be any taxes which affect the common man.

However, no decision has been taken regarding that, he said.

Now on the 5 per cent GST on pre-packed, labelled food items, Kerala has strongly conveyed to the Centre its opposition to the same, the minister said.

We had sought a clarification regarding that and a clarification was issued by the Centre, he said

Now based on it we will write to the Centre that a stand which affects the common man should not be taken, the minister told the House.

From July 18, customers will have to pay 5 per cent GST on pre-packed, labelled food items like atta, paneer and curd, besides hospital rooms with rent above Rs 5,000, in accordance with a GST Council decision.

The Central Board of Indirect Taxes and Customs on Sunday 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.

It also clarified that if a retail shopkeeper supplies in loose quantity the item bought from a manufacturer or a distributor in a 25-kg pack, such sale to consumers will not attract GST.