MADURAI: The GST on food products was strongly opposed by the Agrofood Chamber of Commerce and Industry (ACCI), Madurai, as it would adversely affect the traders.
Despite stiff opposition to the proposal to levy GST on essential day-to-day food commodities consumed by all families, the Central Government, on the recommendations of the GST Council, already issued notifications bringing essential food products, including rice, flour, chenna, paneer, curd, buttermilk, jaggery, khandsari sugar, maize etc., under the ambit of GST with effect from July 18, 2022, S Rethinavelu, president, ACCI, Madurai said.
The Group of Ministers (GoM) nominated by the GST council, had not heard the opinion of trade and industry before recommending upward revision in tax rates for a number of goods and services.
Hence, the Chamber felt that this is the most opportune time for the state government to follow the Supreme Court judgment passed on May 19, 2022 that the recommendations of the GST council were not binding on the Union or state governments reiterating the states’ right to legislate on taxation.
Citing these, he requested CM MK Stalin to announce that TN would not accept the GST Council levying tax on essential food items so that other states would follow suit.