Don’t hike GST, trade bodies urge Nirmala, cite Covid impact

Madurai: Trade bodies have urged Union finance minister NirmalaSitharaman to drop the proposed increase in Goods and Services Tax (GST) rates saying it would make things difficult for genuine tax paying firms at a time when they are limping back to normal from the impact of Covid-19.

The Agrofood Chamber of Commerce and Industry and Tamil Nadu Foodgrains Merchants Association have made separate representations stating that trade and industry are deeply worried about news that the existing tax rates of 5%, 12% and 18% are likely to be scaled up. Agrofood chamber president S Rethinavelu said the proposal had come as a rude shock to the industry, especially micro and small enterprises. “At present, most of the essential commodities are under 5% GST and goods of day-to-day importance are under 12%. The proposed increase would push up prices of almost all commodities,” he said.

“For the past two years, the stakeholders' suggestions have been neglected. Although stakeholders have pointed out the various commodities which are levied higher GST taxation are also not considered by the council. Just because of this many pioneering traders and manufacturing units are forced to shut down their business,” president of the foodgrains association S P Jeyapragasam stated.