GST on pre-packaged goods/food packets was levied after some States gave feedback of losing revenues they previously earned from levy of VAT on food items, a top government official said.
The decision to levy the tax, which came into effect from July 18, is not that of the Union Government but of the GST Council. It was considered by the Fitment Committee that has officers of some States and the Centre.
It was also recommended by a group of ministers (GOM) consisting of minister representatives of some States and finally by the GST Council, Revenue Secretary Tarun Bajaj told PTI.
