Inflation: GST on canned food items will increase inflation, CAT said – burden will increase, small companies will suffer.
With the imposition of 5% GST on canned and labeled food items, the prices of essential items of daily use will increase. This decision of the GST Council will increase the burden of compliance, which will hurt the food traders. The Confederation of All India Traders (CAT) said on Monday that Finance Minister Nirmala Sitharaman and state finance ministers should reconsider the decision.
In the 47th meeting of the GST Council, it has been decided to levy 5% GST on canned or labeled meat, fish, curd, paneer, lassi, honey and puffed rice with effect from July 18. CAIT general secretary Praveen Khandelwal said, the country’s food grains traders are angry. Big companies will benefit from this decision, while small companies and businessmen will suffer. In such a situation, the organization will demand the Finance Ministers of all the states to withdraw the decision. agency
Recommendations on Appellate Tribunal in a month
Revenue Secretary Tarun Bajaj said in an ASSOCHAM program on Monday, the committee of state finance ministers will give its recommendation within a month regarding the setting up of the GST Appellate Tribunal. The GST Council last week took a decision to constitute a Group of Ministers to address the concerns of various states regarding the constitution of the Goods and Services Tax Appellate Tribunal (GSTAT). The GST Council Secretariat will soon announce the terms, conditions and names of the members of the Group of Ministers.
Only 28% tax on luxury items: Secretary
The Revenue Secretary said that on luxury products, GST will have to be paid at the maximum rate of 28%. However, we can adjust the other three tax rates in two. We can see how the country progresses and whether we can bring these rates down to just one rate or not.
He said, after 5 years of implementation of GST, it is time for introspection to see how this framework has evolved.
On the demand to bring petroleum products under the purview of GST, he said that the tax on fuel forms a major part of the revenue of the central and state governments. Will have to wait for some time for this.
