Grocery traders in the region have resented surprise raids being conducted by the GST Intelligence Wing to detect sale of unbranded rice, dhal and other products in packed containers bearing the name of the shops.
The surprise raids and the hefty fines imposed by the GST officials have unsettled the trading community, according to a petition submitted to the State government by Tamil Nadu Vanigar Sangangalin Peramaippu.
According to Peramaippu State general secretary Ve. Govindarajulu, traders ignorant of the latest GST regulations on sale of branded and unbranded rice and other food items were being treated like criminals.
ADVERTISEMENT
The trader undertaking packing of goods in unit containers, which bears a brand name, shall have to file an affidavit before the jurisdictional commissioner and print with indelible ink on the unit container that he is voluntarily foregoing his actionable claim or enforceable right on such brand name.
“There is a need to sensitise small-time traders to this requirement,” Mr. Govindarajulu said, seeking six more months for compliance.
The fines are being levied with retrospective effect. The products in packed containers have been sold to customers without levy of 5% GST. The margins in grocery business being low, it will be impossible for traders to pay the fine being levied to the extent of 100%, Mr. Govindarajulu said.
ADVERTISEMENT
Some supermarkets and retail units find themselves in a compulsive situation of paying fines running into lakhs of rupees, he said.
The Tamil Nadu GST Professional Association has been conducting a series of awareness programmes for traders in Tiruchi.
According to Mushar Ali, public relations consultant, Tamil Nadu GST Professional Association, the onus is on traders to keep themselves aware of GST regulations on branded and unbranded items.