5% GST Applicable on Pre-Packaged Atta, Pulses, Cereals, Wheat, Flour , Curd, Lassi etc., If Weighing less than or equal to 25 kg Effective from 18.07.2022 by CBIC

                  5% GST ON FLOUR, WHEAT, PULSES, CEREALS

The CBIC ( Central Board of Indirect Taxes & Customs) has levied a GST of 5% on items that fulfills a Certain Criteria.

Any Flour, Wheat, Pulses, Cereals that are pre-packaged and weighs less than or equal to 25 kg/25 liter and not more than 25 kg/25 liter will attract a GST of 5%. 

This has been very clearly specified in the notification (F. No. 190354/172/2022-TRU, dated-17.07.22)  (Govt. of India Ministry of Finance, Department of Revenue) that this GST is applicable only on pre-packaged items and not on loose items. which means the item that is pre packed (specified Goods) on the absence of purchaser or consumer will be treated as pre packed item. Any item getting packed specially for the purchaser at the time of purchasing in front of the purchaser will not be treated as pre packed (Specified goods) and will not attract a GST of 5%.

This means that the Retail shops that has made the packets or lots of Items less than or equal to 25 kg and displayed in the shelfs before only, and the consumer is buying that packed item directly then it will attract a GST of 5%. And if the same pre packed item is of  26 kg or more then it will not attract a GST of 5%.

Basically this will affect the branded packed Items for example AASHIRVAAD ATTA and the loose Flour cereals are not at all affected from this.

This is applicable to every one like Wholesaler selling to Distributor, to Retailer, Retailer selling to Consumer, And wholesaler and retailer can also claim Input Tax credit against this.

It is very clearly defined in the notification that good less than or equal to 25 kg/25 Liter will attract GST of 5%. For Example any product that is prepacked and contains a specific brand name and is weighing 1 kg or 10 kg then 5% GST will be levied irrespective of the multiple quantity, GST will be levied on the basis of Single packaging. 

"Pre-Packaged Goods or commodity" is defined as a means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity. (Defined in the notification F. No. 190354/172/2022-TRU)

These pre-packaged goods are basically the goods that bear a specific brand name and against which there is a actionable claim or enforceable right in court of law is available.

If the Retailer is Purchasing from wholesaler in pre-packaged form and then selling loose to consumer then wholesaler can charge 5% from retailer but retailer will not charge from consumer as consumer is not purchasing a pre-packed commodity.

likewise if retailer is purchasing on loose from wholesaler and then selling in packaged item consisting of specific brand name against which enforceable right in court of law is available then retailer can charge 5% GST from consumers.

After all of the above a Consumer has to keep in mind that in any condition Retailer cannot charge any extra amount over and above the MRP specified on the commodity.