GST to be imposed on pre-packed meats, curds, paneer and puffed rice

Food item like meat, fish, curd, paneer, jaggery, puffed rice, and honey that are pre-packaged and labelled will now subject to GST. The panel, presided over by Union Finance Minister Nirmala Sitharaman and made up of representatives from all states and UTs, accepted the GoM's recommendation to review the current GST exemption for packaged and labelled food items on the first day of the two-day meeting.

Pre-packaged and clearly labelled meat (aside from frozen), fish, curd, paneer, honey, dried legumes, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods, organic manure, and coir pith compost are therefore no longer exempt from GST and will now be subject to a 5% tax.

In a similar manner, bank fees for issuing checks will be charged to an 18 percent GST (loose or in book form). Maps, charts, and atlases will be subject to a 12 percent tax. GST will still apply to unbranded, unpackaged, and unlabeled items.

In addition, a 12 percent tax would be charged on hotel rooms costing less than Rs 1,000 per day. In order to raise the weighted average GST rate, which has dropped from 14.4 percent at the time of launch to 11.6 percent, GST rate rationalisation is crucial.

The GST Council also recommended that the inverted duty structure be adjusted for a number of products, such as finished leather, edible oil, coal, LED lamps, printing/drawing ink, and solar water heaters.