FCI allows millers to deliver custom-milled rice, but GST, godown issues remain
The Food Corporation of India (FCI) has allowed rice millers to deliver custom-milled rice (CMR), but unresolved issues remain. Millers are concerned about the high 18% GST on fortified rice kernels (FRK), with only a 5% reimbursement, and the lack of godown allocation for deliveries. These challenges hinder the timely and cost-effective delivery of rice
In a major relief to rice millers, the Food Corporation of India (FCI) has granted permission to deliver custom-milled rice (CMR), but still unresolved issues regarding the allocation of godowns for delivery and the Goods and Services Tax (GST) on fortified rice kernels (FRK) continue to be major hurdles, leaving millers hesitant to proceed.
“The FCI has allowed the millers to deliver the CMR. All the procurement agencies have almost completed the physical verification and the team members are likely to submit a report by Monday to DC for starting the delivery,” said Anil Kumar, DFSC, Karnal.
We purchase fortified rice kernels at Rs 5,000 per quintal plus 18 per cent GST, but only 5 per cent of the total GST is reimbursed. The government should fix charging of 5 per cent GST, as was done last year. — Saurabh Gupta, president, Karnal Rice Millers and Dealers’ Association.
Rice millers welcomed the permission given by the FCI, but stressed that deliveries could not begin until two major issues are addressed — disparity in GST charges on FRK and non-allocation of godowns for delivery of rice. They alleged that manufacturers charge 18 per cent GST on FRK, while the government reimburses only 5 per cent to millers, creating a financial burden.
“We have been allowed to deliver the rice, but still we are facing two major issues. We purchase FRK at Rs 5,000 per quintal plus 18 per cent GST, but only 5 percent GST is reimbursed. The government should fix charging of 5 per cent GST, as was done last year,” said Saurabh Gupta, president of the Karnal Rice Millers and Dealers’ Association.
He said another issue was of the non-allocation of godowns for delivery. “We demand the FCI should link godowns to mills in nearby areas to facilitate timely delivery and reduce transportation costs,” said Gupta.
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Source : The Tribune
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