top of page

the death knell to the indian household's kitchen

  • Writer: Amod BidhuRi
    Amod BidhuRi
  • Jul 18, 2022
  • 2 min read

The decision of the government of India to levy Goods and Service Tax (GST) on packaged food may increase the price of food items and may make the food basket of the indian household more expensive, effecting each and every kitchen of every household in the country.


It is shocking that essential food grains have been brought under GST. The decision will only benefit big corporate houses at the cost of small manufacturers and traders The business community, foodgrain associations, and APMC markets are worst affected by this


After the recent revisions, customers will have to pay GST on pre-packed and labeled food item, hospital rooms costing more than Rs 5,000. With this, packaged food items like curd, lassi, fish, meat, paneer and buttermilk are likely to get costlier.


Besides this, bank cheque book issuance, hotel rooms under Rs 1,000 per day, non-ICU hospital beds over Rs 5,000 per day, solar water heaters, LED lights, lamps, knives, pumps, drawing and marking instruments and work contracts for roads and bridges will also get costlier.



GST effect: What will become cheaper or costlier?

  • Pre-packed and labelled food items (except frozen) like meat, fish, curd, paneer and honey will now attract a 5 % GST.

  • Unbranded items such as flour and rice will attract a 5% GST if they are pre-packaged and labelled. Currently, only branded versions of these items attract 5% GST.

  • GST will also be levied on the fee that banks charge for the issue of cheques.

  • Dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost will now attract a 5 per cent tax.

  • GST rate will be hiked from 12% to 18% on items like printing, writing and drawing ink, certain knives, spoons and tableware, dairy machinery, LED lamps and drawing instruments.

  • A rate increase from 5% to 12% is expected for solar water heaters and finished leather.

  • Goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST.

  • A 12 per cent tax on hotel rooms below ₹1,000/day will be levied, as against a tax exemption currently.

A roll back to bring the food products under GST is needed as For common man, it will be a death knell,”

 
 
 

Recent Posts

See All

Comments


bottom of page