GST on Pre-Packaged Labelled Food Items Applies to Curd, Buttermilk

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Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services throughout India. It is a comprehensive tax that subsumes all other indirect taxes. GST has replaced several indirect taxes, including the Value Added Tax (VAT), Service Tax, Central Excise Duty, and more.

One of the areas that GST applies to is pre-packaged and labelled food items. These include products such as curd, buttermilk, and more. In this article, we will delve into the specifics of GST on pre-packaged and labelled food items.

What are pre-packaged and labelled food items?

Pre-packaged and labelled food items are those that are packaged in advance and labelled with the name of the product, ingredients, nutritional information, and more. These items are usually sold in retail stores and supermarkets.

What is GST on pre-packaged and labelled food items?

Under GST, pre-packaged and labelled food items are taxed at different rates depending on the item. The GST on curd, buttermilk, and other similar items falls under the 5% tax slab.

What is the rationale behind GST on pre-packaged and labelled food items?

The rationale behind GST on pre-packaged and labelled food items is to ensure that there is uniformity in the tax rates across India. This also ensures that there is no tax evasion and that all businesses pay their fair share of taxes.

What is the impact of GST on pre-packaged and labelled food items on businesses?

Businesses that sell pre-packaged and labelled food items are required to register for GST if they have a turnover of more than Rs 20 lakhs per annum. They are also required to file GST returns regularly.

However, businesses that have a turnover of less than Rs 20 lakhs per annum are exempt from registering for GST.

Conclusion

GST on pre-packaged and labelled food items is an important aspect of the tax regime in India. It ensures that there is uniformity in tax rates across the country and that all businesses pay their fair share of taxes. It is important for businesses that sell pre-packaged and labelled food items to register for GST and file GST returns regularly to avoid penalties and fines.