Plea to exempt fishmeal from GST regime

‘While expecting a positive step, we have been asked to pay it with retrospective effect’

The Fishmeal and Oil Manufacturers and Merchants’ Association has appealed to the Central government to exempt fishmeal from Goods and Service Tax, as in the previous Central Excise and Value Added Taxes regime.

Speaking to reporters here on Wednesday, Shahul Hameed, president of All India Fishmeal and Oil Manufacturers and Merchants’ Association -Tamil Nadu Chapter, said fishmeal was prepared using small fishes and supplied to aquaculture units as feed for prawns. It was exempted from the repealed Central Excise and Value Added Tax from the beginning and hence the industry was hoping that it would not get disturbed by the GST regime. The then Finance Minister, Arun Jaitley, had promised in the Parliament that the goods and services that were exempted in Central Excise and VAT would continue to enjoy the exemption in the GST regime too.

Till date, the taxpayers from the industry, who were paying 12% GST on fish oil, were declaring their monthly sales of fishmeal on which no tax was collected in their GST returns, which were accepted by the officials and they never raised any objection for non-payment of GST.

Against this backdrop, a circular issued by the Union government on December 31, 2018 stated that fishmeal would attract 5% GST and the tax should be paid retrospectively from July 1, 2017.

“Our association members met the Prime Minister and Finance Minister (Arun Jaitley) along with a few MPs to submit a memoranda in this connection. The Finance Minister was convinced about the anomaly and promised to set it right. Even as we’re waiting for a positive step, the GST officials are taking draconian steps to collect the tax, which will have disastrous consequence on the livelihood of fishermen and other stakeholders,” said Mr. Shahul.

To highlight their demand and in protest against the “excessive action” being taken by the GST officials, 13 fishmeal manufacturing units in Tamil Nadu have downed shutters since August 10. Consequently, purchase of small variety fish (5,000 tonnes a day) and production of 1,000 tonnes of fishmeal a day by the industry remain affected.

“A total of 53 fishmeal manufacturing units across the country have shut down their operations in protest against the 5% GST on fishmeal. Considering the livelihood of several lakh workers directly involved in this industry and the fishermen, boat owners and the aqua farm personnel, the Centre should exempt fishmeal from GST,” he said.

Association coordinators A. Antony Arasangamani, P. Jaya Susheela, Muthunayagam and Venkatesh were present.