Kerala has set a precedent by going the opposite way. Kerala Finance Minister KN Balagopal told reporters that the Kerala government will not impose GST on 1 kg or 2 kg food packets. He said this kind of decision will create a conflict with policy but the Kerala government will not back down from this decision in the interest of marginalized people.
At any rate, she said, in Kerala we don't want to tax items sold in 1 or 2 kg packets or in bulk at Kudumbashree or small shops. The Kerala government's Kudumbashree, a women's self-help group, is considered one of the largest women's empowerment projects in the country. It is involved in running small scale food processing units and various other enterprises. The Kerala government has written to the Union Finance Ministry in this regard.


