No GST upto 25 kg pre-packaged and labelled goods, no respite for common citizens

While there is a respite for the wholesalers, there is no way out for common citizens from paying the 5% GST on ‘pre-packaged and labelled’ goods.

Traders from APMC say that this will only benefit a section of wholesalers while there is no respite for common citizens who are already reeling under high inflation. The Grain Rice and Oilseeds Merchant Association (GROMA) said that it will continue its fight against the imposition of 5 % GST. Bhimji Bhanushali, secretary of GROMA said that wholesalers will make packets of a minimum of 30 kg to skip the additional burden.

According to Bhanushali, even a packet above 25 kg containing small packets of 1 kg or 2 kg for retail sales will attract 5 % GST.

Traders say that the imposition of GST on pre-packaged items will have an adverse impact on small traders or retailers who were dealing in small quantities. “There will be brought under the GST and their burden is likely to increase,” said a trader from APMC’s Grain market, adding that that is why they have given relaxation up to 25 kg and clarified on the event of implementation.

Bhanushali said that only 5 percent of people pay GST in the whole country. Rest 95 percent of people are not registered, they do business with unbranded food grains and the GST was not applicable to them to date. But all this is happening with the connivance of the corporate sector. “On the one hand, the Central government is distributing ration free of cost, on the other hand, it is increasing the inflation by imposing 5 percent GST on unbranded food grains,” he added.

Supriya Rai, a Ulwe resident said the high inflation has already made it difficult to manage the kitchen’s budget. “The additional 5% price rise on almost all essential items will further add problems,” said Rai. Similarly, Pritam Shah, a flour trader from APMC said that even if they change the packaging size to skip it, it will have an impact on their business.