No GST on lose, unbranded wheat, rice, paneer, clarifies govt

Mumbai: Adding to the slew of clarifications on GST, the government declared on Wednesday that central GST (CGST) rate on goods like paneer, natural honey, wheat, rice is only applicable when these products are packaged under a brand name.

The Goods and Services Tax (GST), which many believe is the biggest indirect tax reform, was rolled out on July 1 and is concerned with manufactured goods and services. However, certain goods like paneer, natural honey, wheat, rice, cereals, pulses were exempted from the four-tier structure.

However, customers have raised confusion over whether packaged and branded versions of these goods are also exempt from GST. Clearing this doubt, the government said these goods will attract GST only if they are packaged and bear a registered brand name.

“Supply of such goods, when put up in unit container and bearing a registered brand name attracts 2.5% CGST rate,” read the government statement.

It further clarified that ‘registered brand name’ refers to “brand name or trade name which is registered under the Trade Marks Act, 1999”.  Therefore, unless the brand name or trade name is actually registered under this act, you are not required to pay GST on these products.

The government has been making a number of efforts to clear doubts and confusions in relation to GST. On Tuesday, the government clarified that change in Maximum Retail Price (MRP) should be reflected on goods packaged before July 1 with the help of new stickers. Thus, both old and new MRPs will be on the product.