Flour, rice and other food items were brought under tax for the first time from Monday and their prices increased. For the first time in independent India, food grains were taxed. At the same time, businessmen are planning a nationwide demonstration against it. Analysts believe that bringing food items under the purview of GST will increase inflation and the poor will have to bear the brunt.
Praveen Khandelwal, president of the Confederation of All India Traders (CAIT), an organization representing over one crore small shopkeepers and wholesalers, has said that 5 per cent GST on food products and increase in tax on other household items has put inflation on the public and traders. burden has increased. Everyday consumption items such as pre-packaged and labeled curd, lassi and murmure (muri) will now attract GST at the rate of 5 per cent. Traders and shopkeepers protest against hike in taxes on several products, including cereals and household items, nationwide next week Will protest. Let us tell you that earlier only the flour, rice and other items of branded companies used to attract GST.
After the protests escalated on Monday, the Finance Ministry issued a clarification regarding GST. The ministry said that GST has been imposed on those food items, whose weight is less than 25 kg. If a trader takes 25 kg or more of goods and sells them as retail goods, then no GST will be levied on it.