GST tweak on food items to plug revenue leakages, says CBIC chief

Says it will build a robust tax system without being intrusive

The Goods and Services Tax (GST) Council’s decision to bring unbranded packaged consumer items within the GST net is meant to plug revenue leakages and reduce disputes, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri has said.

Packaged consumer items such as curd, paneer, lassi, and butter milk will be taxed at 5 per cent from July 18, irrespective of whether the item is a registered brand or not. “If it’s ‘packaged and labelled’ it will be taxable,” Johri said in an interaction. However, items unpacked and not labelled will remain exempt from GST.

The Council on