GST on Food Products
- Items taxed at 18% include mushrooms preserved by means other than vinegar, acetic acid or sugar.
- Exemption from income-tax for income from mushroom growing under controlled conditions is provided.
- The scope of ‘pre-packaged and labelled’ goods for GST includes items like pulses, cereals, and flours.
- GST rate on live poultry is nil, and similarly, there is no GST on eggs, fresh meat, and fish.
GST on Restaurants
- 12% GST for restaurants without air conditioning or liquor.
- 18% GST for restaurants with air conditioning or liquor license.
- 28% GST for five-star hotel restaurants.
GST in Special Circumstances
- GST is payable on imported goods unless exempt.
- Sale of goods within certain areas is disregarded for GST purposes.
- GST treatment and reporting requirements for goods in these areas are summarized.
- Selling plants and seeds for plantation, as well as manufacturing HDPE grow bags used to grow plants, and selling plastic pots for growing plants are transactions that may be taxable under GST; an inquiry for HSN code and tax rate has been made.
State and Union Territory GST
- SGST is levied by states on intrastate supplies and is governed by state SGST Acts.
- UTGST not exceeding 20% is levied on intrastate supply of goods and services in Union Territories.
Additional GST Notes
- The highest GST slab applies to the current range of 30-31% goods.
- Ultra luxuries and certain demerit goods are subject to GST Compensation Cess, which is in addition to GST and lasts for 5 years to compensate states.
- IGST applies to interstate transactions and benefits both the central government and the states.
- Physical gold purchases are subject to GST, while paper gold like ETFs or mutual funds have separate tax rules.
- It is unclear whether GST applies to employee recoveries due to the absence of a supply of goods or services.
Note: Questions regarding specific GST rates on items like green peas and onions require further clarification.