THIRUVANANTHAPURAM: Kerala's state finance minister, KN Balagopal, stated in the state assembly on Monday that the state has expressed its vehement opposition to the 5 percent GST on pre-packaged, labelled foods like wheat, paneer, and curd. In the House, he was responding to inquiries about the Goods and Services Tax (GST).

Kerala has often argued during GST Council meetings that the previous higher tax on luxury goods should be reinstated and that there shouldn't be any levies that harm the average person. But he said that no decision had been made in that regard.

Kerala has clearly communicated to the Centre its disagreement to the 5% GST on pre-packaged, labelled food items, the minister added.

We had requested clarity on that, and the Center had responded with clarification, he added. The minister informed the House that we would write to the Centre to request that a stance that would negatively impact the average person be avoided be taken.

According to a resolution made by the GST Council, starting on July 18, consumers would be required to pay 5% GST on pre-packaged, labelled foods including atta, paneer, and curd as well as hospital rooms with rent above Rs 5,000.

The Central Board of Indirect Taxes and Customs announced on Sunday that starting on July 18, single packages of food goods like cereal, lentils, and flour weighing up to 25 kg will be deemed to be "prepackaged and branded" and subject to a 5% GST.

It also made clear that a retail shopkeeper selling an item to customers in loose form after purchasing it in a 25-kg box from a manufacturer or distributor would not be subject to the GST.

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