Cat’s demand for withdrawal of tax on unbranded food grains, said that the products of common people will be expensive due to the decision

Demand for withdrawal of tax on food grains marked by CAT

According to CAIT, only 15 percent of the population in the country uses big brand goods, while 85 percent of the population lives on products without a brand or mark.

The business organizations of the country have marked the food grains (Food Product), has demanded to withdraw the decision to bring butter, curd, lassi etc. in the tax slab of 5 percent. Confederation of All India Traders ( CAIT) and other food organizations said that this decision will increase the business of big brands against small manufacturers and traders and will make the items used by the common people more expensive. In fact, special food items, cereals etc. have not yet been branded. GST ,GST) was exempted. With this decision of the council, pre-packaged, pre-labeled items have now been brought under the tax net of GST.

On Wednesday evening, CAT’s National General Secretary Praveen Khandelwal met the Union Defense Minister Shri Rajnath Singh on this subject and demanded a discussion with the concerned traders before the notification on the move. The Union Minister has assured to hold talks with the Finance Minister in this regard. CAIT informed that a delegation will soon meet Union Finance Minister Smt. Nirmala Sitharaman, Commerce Minister Shri Piyush Goyal and other Union Ministers on this issue and urge them to keep this decision on hold.

Tax on unbranded goods will increase the burden on common people

According to CAIT, only 15 percent of the population in the country uses big brand goods, while 85 percent of the population lives on products without a brand or mark. Bringing these items in the tax slab of GST is not a fair one. CAIT said that this decision should be withdrawn by the Council and this decision should not be notified as an immediate relief. Business leaders said that there should definitely be an increase in GST tax collection, but instead of bringing the goods of common people in the tax slab, the tax net should be widened, for which those who have not yet come under the tax net, they should be included in the tax net. should be brought which will increase the revenue of the central and state governments.

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Farmers may also be affected

Business leaders said that at first sight, the farmer also appears to be affected by this decision because the farmer also brings his crop packed in sacks, so the council has not clarified whether GST will be applicable on that too. He also said that marking and writing other important information on each pack is required under the Food Safety and Standards Act. Even if someone wants to sell any goods without a mark, he cannot sell it and as soon as the mark is applied, he comes under the purview of GST. According to this decision, now if a grocery shopkeeper also sells food items packed with any mark for identification of his item only, then he will have to pay GST on that food item. After this decision, agricultural products with pre-packaged labels like paneer, buttermilk, packaged curd, wheat flour, other cereals, honey, papad, food grains, meat and fish (except frozen), puffed rice and jaggery etc. will also become costlier. These items are used by the common man of the country.