GST On Food Items: There is no intention to withdraw GST on packed flour-rice, Council has not made any such recommendation, Government’s statement in the House

GST On Food Items: There is no intention to withdraw GST on packed flour-rice, Council has not made any such recommendation, Government’s statement in the House

GST On Food Items: The Central Government has clarified that at present there is no intention to withdraw GST on essential food items like flour, rice. The government said that no such recommendation has been made by the GST Council. Minister of State for Finance Pankaj Chowdhary said these things in written reply to the question asked in the Lok Sabha. 

Actually Lok Sabha MP Anto Antony had asked the question whether the government is considering withdrawing the GST imposed on essential food items like flour, rice, milk, etc.? He asked the government to inform about the steps taken in this regard. In response to this question, Pankaj Chowdhary said that pulses, rice, flour, and other food items, when they are sold in the open and are not pre-packed and are not labeled, then they are essential food items. But no GST is levied. But when these food items are sold along with the packet and label, a concessional GST of 5 per cent is levied on them. He said that fresh milk and pasteurized milk are completely free from GST. 

The Minister of State for Finance was asked whether inflation has increased due to the imposition of GST on these food items. And has GST collection increased after imposing GST on these things? In response to this question, Pankaj Chaughri said that the prices of food items increase due to many reasons, which include demand-supply gap, effect of season, supply chain problems, jump in international prices. He said that due to disruption in supply or heavy rains, there is a jump in the prices of agricultural horticulture fruits and vegetables. On increasing the GST collection, the Minister of State for Finance said that when things like flour, rice, pulses are sold in the open, GST is not levied on them. Also, there is no GST on milk.  

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