This Decision Was Much-Needed To Curb Tax Leakage: FM On GST

Finance Minister Nirmala Sitharaman on Tuesday through Twitter clarified the decisions taken by the GST Council in its 47th meeting. The board suggested reevaluating the methodology for the inconvenience of GST on determined food things like pulses, cereals, flour and so on.

The FM highlighted that certain items including pulses/daal, wheat, rye, oats, maize, rice, flour, suji/rawa, besan, puffed rice, curd/lassi when sold loose and non pre-packed or pre-labeled, will not attract any GST.

Sitharaman tweeted that it is not the first time these food items are being taxed and that states were collecting significant revenue from foodgrain in the pre-GST regime. "Punjab alone collected more Rs 2,000 crore on food grain by way of purchase tax. UP collected Rs 700 crore," she said.

"This decision was a much-needed one to curb tax leakage. It was considered at different levels including by officials, the Group of Ministers, and was at long last suggested by the GST Council with the total agreement of all individuals," she said.

Recently, the GST Council in its 47th meeting recommended to reconsider the approach for imposition of GST on specified food items like pulses, cereals, flour, etc. There have been a lot of misconceptions about this that have been spread. Here is a thread to lay the facts: (1/14)

— Nirmala Sitharaman (@nsitharaman) July 19, 2022