New Delhi: The Indian government’s decision to levy 5 per cent Goods and Service Tax (GST) on packaged food may increase the price of rice in Tamil Nadu from Rs 3 to Rs 5 per kg from Monday. The Tamil Nadu Rice Mills Association and traders said in a statement on Sunday that the Center has issued a notification to bring rice, maize and other essential food items under 5 per cent GST from July 18.
The Rice Traders and Rice Mills Association have urged the Tamil Nadu government to put pressure on the central government to bring back the food products under GST. Around 3000 rice mills and thousands of rice traders had protested against bringing essential commodities under the GST slab and closed shop on Saturday. (Also read: Reward for good deeds! Zomato honors agents who travel 10 km in rain to get medicine for sick child)
Rice mill owners and rice traders, in a petition to Chief Minister MK Stalin, had said that as per the Supreme Court’s decisions, the recommendations of GST were not binding on the state government. (Also read: ‘Who would have thought 75 years ago…’: Supports Zerodha co-founder Rishi Sunak)
Speaking to media persons, Tamil Nadu Rice Mill Owners Association state secretary M. Sivanandan said: “The GST Council had imposed tax on registered rice brands in 2017 but exempted unregistered brands. The exemption has now been withdrawn and all pre-packaged rice brands will now attract 5 per cent GST.
While loose rice does not come under the purview of GST, the state food department has directed all shopkeepers to ensure that rice and other food products are sold in packaged form under the FSSAI Act.
However, several mill owners said that implementing 5 per cent GST from Monday may not be practical as many of these mills do not have GST numbers. The mill owners want the mills to get more time to get the GST number.