4 FSSAI News on the Exemption of Taxes & New Drafts that will blow your minds!!

It’s been observed that a lot of confusion had been doing the rounds in regards to the GST levied on certain products and services. The recent amendments and drafts have been mentioned in today’s FSSAI News and shall clarify all your doubts. This news is something which will surprise and be helpful to the FBOs and hotel industry. So make sure you read it!

Without wasting much time, let us grab a quick look at the FSSAI News.

FSSAI NEWS 1. FSSAI proposes revised standards for synthetic syrup and sharbat

FSSAI - Noncarbonated Beverages In a bid to improve the additives regulations, FSSAI has come up with few revisions with respect to synthetic syrup and sharbat. It has now been decided to remove syrups and sharbats from the clauses of Squashes, Crushes, Fruit Syrups and Barley Water.

New definitions and parameters under the new regulations are being put forth by FSSAI. According to the Regulations, sharbat shall contain a minimum of 25 percent of juice or extract of fruit or vegetable or nut or flower or herb, either alone or in combination. Also, it should be free from burnt or objectionable taints, flavours, artificial sweetening agents, extraneous matter, and crystallization.

Moreover, for syrup, it should be obtained by blending syrup made from sugar, liquid glucose and be free from the above-mentioned factors.

“Acidity as critic acid should be between the permissible limits of 0.05 and 0.15 for sharbat and 0.1 to 0.3 for synthetic syrup, respectively, with pH value less than 4.5. The total soluble solids percentage by mass should not be more than 30,” stated the regulations.

FSSAI NEWS 2. FSSAI has issued new GST standards on registration and licensing services provided by FSSAI, fortified milk, hotel industry and few food products


Exemption on FSSAI licensing and registration procedure:

The services provided by FSSAI were initially charged 18% GST making it difficult for the small-scale FBOs. The services include the applications for licencing, registration and other necessary formalities. However, a recent draft from FSSAI exclaims that it will not levy GST on the above services. This gave a major relief to the FBOs, particularly those in the micro-, small and medium enterprises (MSME) sector.

Exemption on Fortified Milk

A confusion as to fortified milk being a value-added product or just a vitaminised product kept the FBOs wondering. Initially, the fortified milk was considered as the value-added product and 12% GST was levied on it. But lately, it has been concluded that fortified milk is nothing but a vitaminised milk enriched with mineral salts. The GST Council in its recent meeting declared exemption of GST on fortified milk.

GST on the Hotel Industry

In addition to this, on the hotel industry, GST will be levied specifically on the transaction value of the accommodation services rather than the declared tariffs. This move was taken as the hotel rooms offered discounts, it amounted to changes in declared rate which could correspond to a different GST as per the prescribed rate slabs on room tariffs.

While 18 percent of GST is applicable for room tariffs ranging between Rs 2,500 and Rs 7,500, tariffs of Rs 7,500 and above attract 28 percent GST.

Besides, five percent GST will be applicable on both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder, while beet and cane sugar, including refined beet and cane sugar, which fall under heading 1701, will attract five percent GST. The earlier rate was 12 percent.

FSSAI NEWS 3. FSSAI issues orders on resizing and lowering the content of salts of few brands that offer snacking options

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In order to protect the environment with the adverse effects of packaging, few well-known companies have taken a pledge to implement productive steps towards a greener India. The companies which offer snacking options like chips have reduced the sodium content by 13- 15 percent in their best selling products. They have decided to lessen the percentage to 75% by 2025. The packaging process will also be resized to reduce its carbon exposure in the environment significantly.

FSSAI NEWS 4. FSSAI shall exempt minor labeling defects for FBOs

fssai newsConsidering the small-scale manufacturers who have been paying fines for negligible labeling defects and in order to avoid the wastage of resources, FSSAI has taken this action. It has ordered the food safety officers of the state to warn the shopkeepers instead of taking legal actions as these mistakes does not cause harm to public health and can be rectified easily.

We hope this week’s FSSAI News did surprise you and relieved you from the taxes. Thus, you may now relax with the recent drafts and anticipate the upcoming news. We will be back with such FSSAI Updates in the next week. That’s all for the day folks.

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