Wholesale food grain trade exempted from GST levy

Chennai: The transactions of unbranded food grains and other products dealt by wholesalers will be kept out of GST rates, the government told a traders body. Traders will start a nationwide agitation from July 26 against the new GST rates.

The government has clarified that the new GST is applicable only on pre-packed and pre-labelled products weighing up to 25 kg. For quantities of above 25 kg, there will be no GST applicable. This will keep wholesalers out of GST and this is a big relief for the traders. At the same time, those who come under the purview of this tax will get input credit of the given tax, while there will be no tax on supplying loose goods. Therefore, the implication of the tax remains on a section of the traders, the Confederation of All India Traders (Cait) said.

The Cait, meanwhile, said it will launch a nationwide movement from July 26 to demand a new GST law and review of rules afresh for radical changes in the GST.

It said both the government and the traders have had many experiences related to GST in the last five years, and based on that the GST system can be streamlined so that this tax system can work permanently and traders can easily comply with taxes.

The national campaign of Cait will be started from Bhopal on July 26.

From Monday, several goods including food items and essential goods have started attracting GST. Food grains, packed curd, lassi, buttermilk will attract 5 per cent GST and processed forms of mango including mango pulp will attract 12 per cent GST.