Bring snacks under single taxation system: Traders
Due to this type of taxation, the stakeholders were getting disturbed by the lower-level authorities. Moreover, a GST of 12% on such snack items is very much on the higher side.
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MADURAI: Tamil Nadu Foodgrains Merchants Association Limited (TNFMAL), Madurai demanded action from the Centre to bring down GST on spicy snack items like ‘namkeen’ to five per cent.
A variety of spicy snacks like ‘kara sevu’, ‘kara boonthi’, ‘pakoda’ and mixtures are available in the market.
Under the GST, for these types of items, two tax rates including 5% and 12% were announced. Now, these items are under two different slabs 5% (other than pre-packed and labelled) and 12% (pre-packed and labelled).
The traders were continuously receiving notices from the GST authorities to pay 12% GST for these items. But, the stakeholders collected only 5% GST from the consumers and paid it to the authorities, SVSS Velshankar, president, TNFMAL, Madurai said on Wednesday.
If these items were sold (pre-packed and labelled), 12% GST was levied. When these items in retail were sold loose as requested by consumers from time to time, 5% GST was levied.
Due to this type of taxation, the stakeholders were getting disturbed by the lower-level authorities. Moreover, a GST of 12% on such snack items is very much on the higher side.
“GST was implemented with a motto of a single rate of tax for goods and services throughout India. But this principle is getting defeated and commodities like ‘namkeens’ and some other products by citing the Legal Metrology Act, are levied at two different rates of taxation according to packaging,” he said.
Due to this, trade and industry are suffering and the genuine taxpayers were affected. Hence, the call is to discard the double taxation policy and the authorities must announce 5% GST for all these commodities immediately.