INTRODUCTION
Amongst the myriad representations placed before the Goods and
Service Tax Council (GST Council) for consideration in their
47th meeting, one of the significant issues was rate
rationalization on food products.
Hitherto, GST was chargeable on various food products so long as
they were supplied in a unit container and bore a registered brand
name or a brand in respect of which an enforceable right in law
existed. Conversely, if there was no registered brand name or the
enforceable right in law was relinquished, GST was exempt.
As can be understood, this distinction between
‘branded' and ‘unbranded' food products was
sought to be removed in order to (a) plug tax leakage (b) formalize
the unbranded food products market and (c) create a level playing
field for the benefit of the consumer.
