Traders seek discussion on slabs before next GST meet

MADURAI: Stakeholders relying on Tamil Nadu Foodgrains Merchants Association Limited (TNFMAL), Madurai, have sought a meeting to discuss and make suggestions and recommendations ahead of next Goods and Services Tax (GST) council meeting.

Earlier, under the VAT regime and Excise Duty, flour (health mix powder) made from millets were exempted from taxes. After the introduction of the GST too, it was said that the same practice would continue. However, on the contrary, 18 per cent GST is being levied on this commodity now. Due to this high taxation rate, business would largely be in the hands of tax evaders, affecting the state badly, SP Jeyapragasam, president, TNFMAL, Madurai said on Wednesday.

A discussion or meeting should be held once a month with officials in the Ministries concerned, so as to represent demands, make suggestions and recommendations through the state Finance Ministry. The hardships faced by the stakeholders would be solved if the procedure were followed.

Prior to implementation of GST Act in 2017, former Chief Minister J Jayalalithaa did not accept the bill, but later her successor Edappadi K Palaniswami gave his nod, Jeyapragasam said while recalling that former Union finance minister Arun Jaitley was helpful in redesigning the taxation that resulted in various benefits, including reduction in taxes and exemptions.

He also added that during his tenure, M Karunanidhi, former chief minister, accepted various demands from the manufacturers and traders and reduced taxes besides giving exemptions for various food products.