All Gujarat Federation of Tax Consultants has made a representation related to Withdrawal of GST on Pre-Packaged Labeled food items on 02nd August, 2022.

Please find attached herewith the copy of the representation.

We thank the Chairman and the Members of the Representation Committee of & Chairman & Members of the Indirect Tax committee for representing the burning issue raised after 47th GST Council meeting .

ALL GUJARAT FEDERATION OF TAX CONSULTANTS

2nd August, 2022

To,
Ms. Nirmala Sitharamanji,
Chair Person,
Goods and Service Tax Council,
Office of the Goods & Services Tax Council,
Tower-ii, 5th Floor, Jeevan Bharti Building,
New Delhi-110001
E-mail: [email protected]

Sub: Representation regarding withdrawal of GST on Pre-packaged  Labeled food items

Respected Madam,

1. About Federation:

The All Gujarat Federation of tax Consultants (AGFTC) founded in 1992, is the first and only Apex Regional Body of Advocates, Chartered Accountants and Tax Practitioners (Tax Professionals) of Gujarat, having membership strength of 1500 professional and institutional membership of 37 local bar associations from all the District of Gujarat.

The prime object of the federations is not only to work for the cause of the professionals but also educate the public at large. And to act as a Catalyst between citizen and Government authorities. The AGFTC regularly organize Seminars, Webinars, Tax Conclave and Lecture on legal awareness in mofussil areas across the Gujarat.

2. Withdrawal of GST on pre-packaged and labeled food items

As per recommendation of 47th GST Council meeting, pre-packed and labeled meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jiggery, puffed rice (muri), all goods and organic manure and coir pith compost would not be exempted from GST and will now attract a 5 per cent GST w.e.f. 18th July 2022.

As per recent market trend, no loose items or goods are being sold in the country. Even the smallest item of up to 100 grams is being sold in packing. 85 per cent of the people of the country use unbranded goods and the decision to impose tax will be unnecessary burden of extra expenses on the general public. It will enhance extra burden of tax compliances on small traders.

Goods above 25 kg in a single packing have been exempted from the GST which will not benefit the general public and small traders. General public of the country are not benefited by this exemption because generally people buy goods in packs ranging from 1 kg to maximum 10 kg and they will have to pay 5 percent GST on them.

We humbly request to withdraw GST on pre-packaged and labeled food items and oblige.

We sincerely hope that the Government under the dynamic leadership of Hon'ble PM Shri Narendra Modi and Hon'ble FM Smt. Nirmala Sitharaman would provide the requisite reliefs to the General public and small traders.

Thanking you,
Yours sincerely,

Adv. Hiren R Vakil
(President)

Balmukund Shah
(Hon. Secretary)

Adv. Dhiresh T Shah
(Chairman- Representation Committee)

Adv. Bharat L Sheth
(Chairman- Indirect Tax Committee)

C.C. To

1. Nirmala Sitharaman
Honorable Finance Minister
Ministry of Finance
134, North Block, Parliament Street,
New Delhi – 110

2. Chairman,
The Central Board of Indirect taxes and custom,
New Delhi. 110001