New Date: 18 June 2022

• A group of ministers (GoM) reviewing the Goods and Services Tax (GST) rates has decided to remove exemption for packaged food items, if sold under unregistered brands. These items will be taxed at 5%, the rate for branded food.
• The move is in the wake of misuse of the exemption for unbranded food by a section of the food processing industry, including rice and wheat millers.
• The decision was taken by the GoM headed by Karnataka chief minister Basavaraj Bommai which met on Friday.
• The recommendation will be considered by the GST Council which will meet on June 28-29 in Srinagar.
• The GoM’s decision follows Tripura High Court’s judgement against Sarvasiddhi Agrotech on April 20, 2021, wherein the court upheld the tax demand on the company for selling packaged rice under the marking as Aahar normal, Aahar Gold, Aahar premium.
• Council can consider raising the GST on online gaming from 18% to 28%, to bring the skill-game tax rate at par with chance games involving gambling and betting

Source: https://www.financialexpress.com/economy/unregistered-food-brands-also-to-attract-5-gst-group-of-ministers/2564812/