Gst On Branded Flour
Instant flour mixes cannot be classified as sattu, to attract 18% GST
Instant mixes, including idli, dosa and khaman flour, cannot be classified as chhatua or sattu and 18 per cent GST should be levied on them, the Gujarat Appellate Authority for Advance Ruling (GAAAR) has ruled. Gujarat-based Kitchen Express Overseas Ltd had approached the AAAR against the ruling by the GST advance authority, saying that its seven 'instant flour mixes' are not 'ready to eat' but are required to undergo certain cooking procedures and can be termed 'ready to cook'. The company sells flour mixes of gota, khaman, dalwada, dahi-wada, dhokla, idli and dosa in powder form and pleaded that it is akin to Sattu and should attract Goods and Services Tax (GST) of 5 per cent. The GAAAR rejected the appellant's contention, saying that ingredients which go into the making of 'instant flour mixes" are not covered under the relevant GST rules as is the case with Sattu. According to a CBIC circular, small amounts of ingredients, which are mixed to make Sattu, are specified in the GST
 "Instant flour mixes cannot be classified as sattu, to attract 18% GST")
Pre-packed, labelled cereals, pulses, flour over 25kg exempt from 5% GST
Single packages of unbranded pre-packed and labelled food items like cereals, pulses and flour weighing in excess of 25 kg are exempt from 5 per cent GST levy
 "Pre-packed, labelled cereals, pulses, flour over 25kg exempt from 5% GST")
Flour mills get GST exemption on branded packs with rider
In a major relief for about 1,400 flour mills, the central government has granted conditional exemption from the goods and services tax (GST) for branded pack producers of atta (wheat flour), maida (refined wheat flour) and besan (gram flour).A finance ministry circular dated Wednesday said the GST council in its 21st meeting on September 9 had recommended five per cent GST on branded flour. All brands registered as on May 15 and having an actionable claim or enforceable right in a court of law are covered. However, it adds, the five per cent levy will not apply if the person concerned voluntarily forgoes any actionable claim or enforceable right on such brand name. For this, the brand owner would have to file an affidavit claiming to forgo the claim or enforceable right on the brand name with the jurisdictional commissioner of central, state or Union Territory tax."It is a great relief to flour mills with regional brand presence and without having any actionable claim or enforceable .
 "Flour mills get GST exemption on branded packs with rider")
