New Delhi: Amidst strong protests across the country against the imposition of 5% GST on non-registered branded foodgrains and other food items, the Union Finance Ministry has issued a notification. It has been clarified by issuing a statement that this tax will be applicable only on up to 25 kg packing. No tax will be levied on packing above 25 kg.
With this clarification, most of the wholesalers will be out of the purview of GST, but the hassle and expense of GST will increase for crores of retail traders of the country. At the same time, their food items will become 5% expensive, the burden of which will fall on the general public.
All food grains should be exempted from GST: CAT
The Finance Ministry has also said in its statement that for the traders who will come under the purview of this tax (GST), their input credit of the tax paid will be refunded. There will be no tax on selling loose goods. For this big relief, the Confederation of All India Traders (CAIT) has thanked Union Finance Minister Nirmala Sitharaman, GST Council, and Chairman of the Central Board of Indirect Taxes, Vivek Johri, for giving clarification on the issues raised by ‘CAT’. The matter has been simplified somewhat. CAT’s National General Secretary Praveen Khandelwal said that the organization is firm on its opinion that all the essential food grains for the people should be exempted from GST and there should be no tax on them, whereas the state’s Mandi Tax (Mandi) should be imposed on them. Tax) is already in force. Therefore, ‘CAT’ stands by its demand that 5% GST should be withdrawn immediately on cereals, pulses, and other food items without registered brand even on small packaging.
The anti-people decision is in the interest of multinational companies
Shankar Thakkar, Mumbai president of CAT, the apex body of traders, said that now all types of dry and liquid food grains including packed curd, lassi, and buttermilk will become expensive as these items will now attract 5% GST. The burden of which will directly fall on the common man. This anti-people decision of the GST Council will promote the business of multinational companies and will harm crores of retail traders in the country. Surprisingly, when the GST Council took this anti-people decision last month, the Finance Minister of no state opposed it, while the GST Council includes the Finance Ministers of all the states. Does everyone agree on such an inflation-raising decision? Hence the organization will continue its protest on this issue.
Nation-wide movement plan
Meanwhile, CAIT plans to launch a nationwide agitation from July 26 to demand a new GST law and its rules by reviewing the complex GST laws and rules afresh. This national campaign of ‘CAT’ will be started from Bhopal on 26th July. On this day a general conference of all the business leaders of Madhya Pradesh and prominent business leaders of different states of the country has been called in Bhopal, in which the outline of this movement will be decided.
