Defer GST on unbranded pre-packaged food items, GCCI writes to FM

Citing high inflationary trends, the Gujarat Chamber of Commerce and Industry (GCCI) has written to Union Finance Minister Nirmala Sitharaman Friday requesting her to postpone the decision to impose five per cent Goods and Service Tax (GST) on unbranded pre-packaged food items such as milk, curd, and dried leguminous vegetables, wheat or meslin flour, jaggery, puffed rice, organic food, etc.

“The high inflation has made it difficult for the common man to afford even the basic required food items. In such a scenario, the imposition of 5 per cent GST on unbranded pre-packed food items will add to their woes,” said Pathik Patwari, GCCI President, in the letter, requesting to defer the implementation. He stated that “it is not the appropriate time” for the GST imposition “due to the potentially hazardous consequences” on the common man.

Also Read | GST 2.0: Next stage of reform in the tax regime requires creating federal institutions

Trade bodies from across the country have been writing to the finance minister to withdraw the five percent GST imposed on unbranded pre-packaged food items. There is also a growing fear that the GST Council’s decision will cause huge loss to small traders.