Thiruvananthapuram: The prices of essential items such as food grains and pulses are set to rise by 5 per cent from Monday due to the unexpected decision of the GST Council to hike tax rates. Even non-branded items such as flour and rice above 25 kg will attract a 5 per cent Goods and Service Tax if they are pre-packaged and labelled.  

Unbranded versions of grains and pulses which are sold in small quantities through retail shops are also set to become dearer as the ceiling of above 25 kg was dropped when the notification amending the GST provisions were issued on July 13.

Ironically, the tax to be charged for rice is going to be higher than the tax charged for unpacked chicken.

From Monday onwards, a five per cent GST will be charged for rice packets to be supplied to wholesale agents from mills. This will also push up rice price.

Pre-packed and pre-labelled curd, lassi and buttermilk are among the products that will attract a GST rate of 5 per cent from July 18. It might be recalled that these items were previously exempted from the ambit of GST. 

In the same way, pre-packed meat which is not frozen, fish, honey, jaggery, "papad" and packed wheat powder will also invite a GST rate of five percent.

The decision regarding 5 per cent GST was taken by the GST Council, a joint forum of the Centre and the States, at a meeting held on June 28 and June 29. States like Kerala are keeping mum on this unilateral decision by the GST Council.

Earlier, only products like branded rice were slapped with tax. When the GST was introduced in the country five years ago, essential items such as rice, vegetables, egg, and fish were excluded from the GST regime.

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