Rice sold in retail likely to attract GST
M. Sivanandan, president of the Tamil Nadu Rice Millers Welfare Forum, expressed concern over confusion caused by new GST rules for retail rice sales. The proposed amendment to the Legal Metrology (Packaged Commodities) Rules, 2011, will impose GST on retail rice sold in any quantity, ending previous exemptions for bulk sales. Although millers can claim input tax credits, Sivanandan argues that this change may not impact retail prices and requests the government to fully exempt rice from GST.
M. Sivanandan, president of Tamil Nadu Rice Millers Welfare Forum, said the two communications were circulated widely on social media and many rice millers and traders did not have clarity. Most of the rice brands were selling bulk quantities in bags of 26 kg or more till now. However, when the Legal Metrology (Packaged Commodities) Rules, 2011, are amended as proposed by the Ministry of Consumer Affairs, Food and Public Distribution, rice sold in retail in any quantity would attract GST.
While this has brought to conclusion the confusion among rice millers and traders and millers can take input tax credit for all the inputs they buy, it will also bring all those who sell rice in retail under the GST. Institutional sales will, however, continue to get exemption.
“The move may not impact prices for the retail consumers as prices move according to demand and supply. Rice should ideally be exempted fully from GST and we request the government to consider it,” he said.
Source Link : https://www.thehindu.com/news/cities/Coimbatore/rice-sold-in-retail-likely-to-attract-gst/article68422756.ece
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