LDR GST

GST exemption on unregistered food brands may be withdrawn. It is learnt that the GoM reviewing the GST rates has decided to remove exemption for packaged food items, if sold under unregistered brands. These items will henceforth be taxed at 5% like the rate for branded food. The move is in the wake of misuse of the exemption for unbranded food by a section of the food processing industry, including rice and wheat millers in the name of internal marking to indicate the quality variety, where revenue claims that these markings are nothing but the brand names.  The GoM’s decision follows Tripura High Court’s judgement wherein the court upheld the tax demand on the company for selling packaged rice under the marking as Aahar normal, Aahar Gold, Aahar premium. The company had claimed that these were not the brand names, but an “internal arrangement” to indicate the quality variety. Well!..... Deceptively, we also notice / realise while making purchases that these markings are nothing b...