Don't accept Centre's GST hike on food products: Tamil Nadu Chamber of Commerce

The Tamil Nadu Chamber of commerce has urged the State government not to accept the GST hike on essential food products, stating that the price hike has affected the public.

MADURAI: The Tamil Nadu Chamber of Commerce has urged the State government not to accept the GST hike on essential food products, stating that the price hike has affected the public.

Tamil Nadu Chamber of Commerce and Industries president Dr N Jegatheesan said the Union Finance Minister approved GST on all retail items including packaged goods and labelled food products, following the 47th GST Council meeting held at Chandigarh earlier in June.

"The 5 per cent GST tax on grinders has been increased to 18 per cent which would further weaken small MSME sectors, whose livelihoods have been already affected by the COVID lockdown. The tax hike will be a hurdle to those, who are slowly recovering," he said.

Jegatheesan stated that GST for motorpumps will go up to 18 per cent from 12 per cent from July 18, while 28 per cent tax on online rummy, gambling and lottery has been postponed. "It is very painful that the GST tax has been increased on items used regularly by the common man, though the GST monthly revenue collection crossed above Rs 1.40 lakh crore for the past 5 months. With the tax hike, prices of essential commodities will go up further and hinder common people," he added.