GST On Branded Flour

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

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 .