Lok Sabha Question No. 3109 (UNSTARRED), answered on 2018-01-05
Subject: Branded Food Items
Ministry: HEALTH AND FAMILY WELFARE
Asked by: R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF HEALTH AND FAMILY WELFARE DEPARTMENT OF HEALTH AND FAMILY WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 3109 TO BE ANSWERED ON 5 TH JANUARY, 2018

## BRANDED FOOD ITEMS

## 3109. SHRI R.GOPALAKRISHNAN:

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

- (a) whether the Food Safety and Standards Authority of India (FSSAI) insists on packing and branding of rice, pulses, food grains and flour to provide safe and healthy food to the public;
- (b) if so, the details the reof;
- (c) whether the Government has noticed that a 5 per cent taxation is levied on such branded food items whereas the unbranded food items are exempt from taxation;
- (d) if so, the details thereof and the reasons therefor;
- (e)  whether  Foodgrains Merchants Association  has  submitted  their representation  to  the Government in this regard and if so, the details thereof and the action aken by the Government thereon; and
- (f) whether the Ministry has taken up the matter with the Ministry of Finance forexemption of such branded food items from taxation and if so, the details of outcome thereof?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND FAMILY WELFARE

## (SHRI ASHWINI KUMAR CHOUBEY)

- (a) & (b): No. However, whether sold loose or in packaged form, these products have to conform to the standards prescribed for them under Food Safety and Standards (Food Prod Standards and Food Additives) Regulations, 2011. Further, in respect of packaged food i the provisions of Food Safety and Standar ds (Packaging and Labelling) Regulations, 2011 are to be adhered to.
- ( c) & (d): Ministry of Finance, Department of Revenue has informed that the Goods Service Tax (GST) Council, after examining in detail the issue of GST on packed and branded spec fo od  items,  and  taking interalia into  consideration  the  value  addition  in  such  branded  goods, recommended  5% GST  on  food  grains,  pulses,  flours  (including  wheat  flour)  put  up  in containers and bearing a registered brand name or bearing a brand name in r espect of which actionable claim or an enforceable right is available in a court of law. The notification into force the said recommendation of the GST Council are available on t websitehttp://www.cbec.gov.in/htdocscbec/gst/index .
- (e): FSSAI  has  informed  that  Grain  Millers  Association  have  made  a  representation Hon'ble  Finance Minister & Chairman, Goods Service Tax (GST) Council on 3 rd November, 2017 with a copy marked, inter - alia ,  to  Chief Executive Officer (CEO), FSSAI  seeking review of 5% GST for flour products  with the request  that GST be either made NIL for all catego flour as the profit margins are low or GST  be imposed uniformly on all packages and br nded flour/food  products  irrespective  of  whether  the  brands  are  registered  or  not.  Decisio Government/GST Council thereon is not known to FSSAI.
- (f): Considering the reluctance of food businesses to manufacture fortified products d higher  tax tion  structure  which  increases  their  cost  compared  to  their  unfortified  va Chairperson, FSSAI had written to the Revenue Secretary on 19 th September, 2017 requesting to waive off GST of 5% levied on branded wheat flour provided it is fortified as p er the standards stipulated by FSSAI.  Revenue Secretary, vide his letter dated 23 rd October, 2017  informed that the GST Council, after examining in details the issue of GST on packed and branded spec food items, and taking, inter alia , into consid eration that there was substantial value addition in such branded  goods, recommended 5% GST on food grains, pulses, flours (including  whea flour) put up in unit containers and bearing  registered brand name or bearing  brand respect  of  which  acti onable  claim  or  an  enforceable  right  is  available  in  a  court  of  law clarified that fortified branded wheat flour in which no actionable right is retained exempt from GST.