Good and Service Tax (GST) on pre-packaged goods/ food packets/essential commodities was levied after some states gave feedback of losing revenues they previously earned from levy of Value Added Tax on food items, a top government official said.
The decision to levy the tax, which came into force from July 18, is not that of the Central government but of the GST Council. It was considered by the Fitment Committee that has officers of some states and the centre. It was also recommended by a group of ministers consisting of minister representatives of some states and finally by the GST council, Revenue Secretary Tarun Bajaj said.
In all, the GST Council, the new constitutional mechanism in the country for taking decisions on GST, took a consensus view on levy of the tax, he said. The panel, which is headed by the Union Finance Minister and comprises representatives of all states and union territories, takes decisions when everyone is onboard, he said. However, pulses, wheat, rye, oats, maize, rice, flour, suji, besan, puffed rice and curd/lassi when sold loose and not pre-packed or pre-labelled will not attract any GST.
The comments come against the backdrop of opposition parties led by the Congress stalling functioning of Parliament in the first week of the monsoon session over levying of GST on daily use items and other issues. While states ruled by non-BJP parties were party to the decision taken on the levy of the tax at the Council's meeting in Chandigarh last month, vociferous protests against the levy came just as the monsoon session of Parliament was to start
Rajya Sabha adjourned till midnoon, amid din
