Understanding the GST for Food Items: All You Need to Know

What is the GST for food items?
GST Rates on Eating Out from 1st October 2019 S No Type of Restaurants GST Rate 1 Railways/IRCTC 5% without ITC 2 Standalone restaurants 5% without ITC 3 Standalone outdoor catering services or food delivery service 5% without ITC 4 Restaurants within hotels (Where room tariff is less than Rs 7,500) 5% without ITC 3 more rows ?
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A value-added tax known as the Goods and Services Tax (GST) is imposed on products and services sold in India. A number of other taxes and charges, including excise duty, service tax, VAT, and others, have been replaced by this all-encompassing indirect tax. Every business owner who deals with food products needs to be aware of the GST for food products.

Three separate tax slabs make up the GST on food goods. Fresh fruits and vegetables, milk, curd, and other food items are not subject to GST in the first slab because it is zero-rated. Tea, coffee, spices, and other food goods fall under the second slab, which has a 5% tax rate. Sweets, bakery goods, and other food items are subject to the third slab, which is 12%.

A Food Safety and Standards Authority of India (FSSAI) license is necessary if you want to launch a handmade food business. A regulating authority called the FSSAI makes sure that food marketed in India is both safe and of high quality. All food enterprises, even those that are run from homes, must have an FSSAI license. The size and type of the food business are taken into account while issuing the license.

There are a few easy procedures you must take in order to receive an FSSAI license for homemade food products. The first step is to sign up on the FSSAI website and enter the required information, including your name, address, and contact details. The appropriate paperwork, including a government-issued ID, address verification, and a photo, must be submitted next. Additionally, you must include information on the food items you intend to sell.

There are a few FSSAI licensing exemptions as well. Small food establishments having a yearly revenue of up to Rs. 12 lakhs are free from needing an FSSAI license. To assure the security and caliber of their food items, they must nevertheless register with the FSSAI and adhere to the appropriate regulations.

In conclusion, anyone wishing to launch a food business in India must be aware of the GST for food items and secure an FSSAI license. It not only guarantees the food products’ safety and quality, but it also makes it easier to follow the rules and regulations established by the government.

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