CAIT to states: Withdraw 5% GST on unbranded food items | The Financial Express

Clipped from: https://www.financialexpress.com/industry/sme/msme-eodb-cait-to-states-withdraw-5-gst-on-unbranded-food-items/2600745/

Ease of Doing Business for MSMEs: According to CAIT, 85 per cent of the country’s population buy unbranded items and hence, the decision to impose the 5% GST is being opposed.

gst on unbranded loose itemsThe tax must be repealed in order to relieve the general public of an unnecessary financial burden and traders of the additional burden of tax compliance, CAIT said. (Image: pixabay)

By Parvathy Pillai

Ease of Doing Business for MSMEs: Traders’ body Confederation of All India Traders (CAIT) on Wednesday sent a letter to Chief Ministers and Finance Ministers of all states demanding the withdrawal of the 5 per cent Goods and Service Tax (GST) imposed on unbranded food grains and other items like dry and liquid food grains including packed curd, buttermilk, pulses, rice, wheat, flour etc., which was earlier levied on branded items only.

According to CAIT, 85 per cent of the country’s population buy unbranded items and hence, the decision to impose the 5% GST is being opposed. The tax must be repealed in order to relieve the general public of an unnecessary financial burden and traders of the additional burden of tax compliance, the body added.

The Central Board of Indirect Taxes and Customs (CBIC) on July 17, 2022, had released FAQs addressing questions on revised tax rates on various goods. The clarification noted that only pre-packaged items weighing up to 25 kg will be subject to 5 per cent GST. However, if a retail shopkeeper sells a product to customers in loose after purchasing it in a 25-kg pack from a manufacturer or distributor, the sale will not attract GST.

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CAIT National President BC Bhartia and Secretary General Praveen Khandelwal said it is redundant to exempt loose goods from GST because they are no longer sold without packets in many parts of the country.

“Finance Ministers of all the states have completely disrupted the basic nature of GST in the greed of revenue. Presently the GST tax system has become very complex and it is very important to be simplified in the interest of the country,” Bhartia and Khandelwal said in a joint statement. CAIT has also declared a nationwide movement starting July 26, 2022, to seek a thorough review of the GST regime.

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