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Industry bodies to push for lower goods & service tax rates on processed food
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Monday, 29 August, 2016, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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fiogf49gjkf0d fiogf49gjkf0d The industry bodies will push for lower goods and service tax rates for processed food businesses. After passing the GST bill in Parliament, the states have started the process to ratify the bill.
The whole process is expected to get over before the winter session of Parliament. The consultation process will also take place for framing policy vis-à-vis rates under GST. The food processing industry is slightly worried about the kind of taxation policy under GST for them.
The Confederation of Indian Industries (CII) said that they have already made a presentation before the ministry of food processing industries (MoFPI). Piruz Khambatta, chairman, CII National Committee on Food Processing, said, “We have also asked time for state ministers to discuss the rates.”
Meanwhile, according to sources, the government will first decide the basic structure for the implementation of GST and subsequently the matter related to the tax rates will come up.
All the industry associations had been engaging the authorities to push for a lower tax regime under GST for processed food.
Sources said that food inflation is a subject of concern to the government, so it is generally expected that government would look empathetically into the subject.
Industry associations say that there should division when it comes to process food under the new tax regime.
CII in its representation has called for a zero per cent rate for the product bearing maximum retail price (MRP) of Rs 10, while for the product bearing MRP between Rs 10 and Rs 20, should be classified at lower GST.
“Besides all the packaging material which are inputs to the processing industry should also be at zero per cent so that there is no embedded GST,” it said in its representation.
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