The new GST Gameplan
Updated: Aug 28, 2022
By Chahat Gupta
The GST Council levied a tax rate of 5% on necessary items like cereals, pulses, rice, etc. Previously, these products were taxable only if they were supplied "under a brand name and packed in a unit container". However, the current amendment applies to all products identified as "pre-packaged commodities" under the Legal Metrology Act, 2009 (LMA), regardless of having a brand name or not.
In opposition: The increase in taxes will affect the common man adversely, especially following the current high rate of inflation. Moreover, since most items are already covered by LMA, this amendment is unlikely to bring in any significant revenue. This move has gained opposition from several State Governments as well.
In favour: This change should prevent revenue leakage as some businesses were misusing the exemption on "unlabelled food items" by not registering them.