GST Avoidance Trick To avoid GST on pre-packaged food items

Only food packages that weigh less than 25 kg are subject to the 5% GST. Most companies now put their goods that weigh more than 25 kg in a single package, so they don’t have to pay tax on the package.

Noida: In July, the Center put a 5% GST on pre-packaged and labeled foods that weighed less than 25 kg but didn’t have a brand name on them. After this, most companies now put goods that weigh more than 25 kg into a single package so they don’t have to pay tax on the package. Please note that 5% GST is only charged on packaged food that weighs less than 25 kg.

What the Officials Say

A senior official in the GST department said that the Central Board of Indirect Taxes and Customs (CBIC) had made it clear that grains, such as pulses and flour, weighing more than 25 kg and already packaged in a single packet will not have to pay GST.

If a store buys a 25-kg packet directly from the distributor or manufacturer and sells it in retail quantities, the customer doesn’t have to pay GST. On the other hand, if a person buys a 10-kg packet from the market, he will have to pay 5 percent. pays.

Relief to traders

People’s wallets get a little bit bigger when the GST is put on food, but a lot of the tax money goes straight to the government. But stores and building companies found a way to fight back against the center’s move. Since GST doesn’t apply to food packages that weigh more than 25 kg, most companies are putting their goods that weigh more than 25 kg in a single package.

What did the shopkeeper say?

The owner of a grocery store in Greater Noida, Rakesh Singh, said that he buys large quantities of items directly from companies to avoid fees. Companies that sell branded cereals and pulses put food in packages that weigh more than 25 kg and sell them at grocery stores. When people buy these things from kirana shops, they don’t have to pay GST.

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