Earlier basmati rice was subject to value-added-tax (VAT) or was tax free in different states. However under GST, basmati rice has been included in the category of branded cereals registered in the Register of Trade Marks, that attract a levy of 5% GST.
However, some of the items and services required for making prasadam would be subject to GST, including sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.
The company has brought uniform price by slashing price in southern states where pre-GST taxes were high and by hiking rates in states like Maharashtra.
Only 5% GST was imposed on peanut brittle, whereas 18 per cent GST was levied on pizza served at restaurants and 5% on pizza breads that can be used in homes or eateries
This sale was supposed to be held on Tuesday and Wednesday, but was postponed due to the billing issue on how to raise GST (both CGST and SGST) invoice after auction is complete.
The ministry stated, "GST rate of five per cent will not be applicable on the supply of goods unless the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999."
However, a 600ml bottle of a cola brand in a food joint cost Rs 60, with GST component cited at 18%. But the same sized bottle is available in a departmental store for Rs 35, though the GST cited is 40%.
Tax levied on chocolate would come down from 30% to 28%, while there would be only 18% GST on pasta, cake, pastry and pizza, which is less than the present rate. Cooked meat, mineral water and non-alcoholic drinks would cost less too
Producers of pickles, jam, tomato ketchup, however, complained that GST had raised the taxation level and said sales had slumped after the onset of the new regime.