GST: Call for clarity and reduction in tax rates

Entrepreneurs from a slew of industries air grievances at meeting

Batter matter: An idly batter manufacturer raising his concern about high tax rate under GST at a meeting in Madurai on Sunday.

Demand for reduction of tax slabs and clarity on tax rates for several goods by entrepreneurs from micro, small and medium enterprises (MSME) dominated the dissemination meet on Goods and Services Tax (GST) organised by Madurai District Tiny and Small Scale Industries Association (MADITSSIA) here on Sunday.

Entrepreneurs from a variety of industries, particularly small and medium scale players like idly batter manufacturers, candy manufacturers, bakers and hollow blocks manufacturers, presented their grievances to Nirmala Sitharaman, Union Minister of State for Commerce and Industry, who chaired the meeting.

P. Paramanandam, representing the association for idly batter manufacturers, pointed out that there was no clarity on tax slab for idly batter under GST. “The list of Harmonised System of Nomenclature (HSN) codes released for GST for a variety of goods does not include idly batter. Hence, we fear that it will come under 18 % slab, which is the standard rate for non-listed items. Such a rate will be high for perishable goods,” he said.

Pointing out that the business was an emerging sector with the participation of a large number of micro and small scale players, he appealed to Ms. Nirmala Sitharaman to recommend GST Council to provide tax exemption to the product irrespective of whether it was branded or not.

N. Pandi, president of Candy and Biscuits Manufacturers and Sellers Association, alleged that the GST Council had put the small-scale candy manufacturers and big brands with turnover of hundreds of crore on the same footing. “All of us are asked to pay 18 % tax. We want it to be brought down to 5 % for small scale and cottage industries,” he said.

Similar concern was raised by S. Anburajan, secretary of Indian Bakers Association, regarding the uniform tax slab fixed for small-scale players as well as top brands manufacturing cakes and biscuits.

“Top brands have fully automated manufacturing, which give more shelf-life to their produce. Ours is not,” he said.

Concerns were also raised by entrepreneurs dealing in recycled plastics, gunny bags, incense sticks, pickles, camphor, palmyrah sugar and others about high tax rates.

K.R. Gnanasambandan, past president, MADITSSIA, highlighted the need for the Tamil translation of list of goods for HSN codes to avoid confusion on a lot of products. L. Murari, president, appealed to the minister to address the issues so that the full benefits of GST could be realised.