Summary:
GST on essentials like flour, pulses, and grains has evolved from brand-based taxation to a packaging-based approach.
Key Shifts:
- Pre-2022: GST applied if goods were branded and sold in unit containers.
- Post-18.07.2022: GST applies to all pre-packaged and labelled goods (as per the Legal Metrology Act), even if unbranded.
Amendment in 2025:
- Notification No. 01/2025 fixed the 25 kg/litre limit directly in the GST law—bringing certainty.
- Exemption for agricultural produce (above 25 kg) was removed—creating uniform treatment for all goods.
Impact:
- Brings small traders, FPOs, and MSMEs into the tax net.
- Raises compliance for rural and retail sellers.
- Aligns GST with clear, measurable standards—reducing evasion but increasing responsibility.
Read the article online here: https://www.taxmann.com/research/gst-new/top-story/105010000000026712/taxability-of-commodities-under-gst-from-branding-to-pre-packaged-and-labelled-goods-experts-opinion
Please find the article attached for your reference.
I hope you find the analysis insightful and welcome your feedback or queries.
(The author is a practicing advocate, Co-Founder and Legal Head of RB LawCorp.
He specializes in GST law. Suggestions or queries can be directed to
ashsharma@rblawcorp.in. The views expressed in this article are strictly
personal.)
