Bhopal (Madhya Pradesh): Madhya Pradesh chapter of Confederation of All India Traders (CAIT) has demanded to lower GST rates ahead of GST council meeting scheduled in September.
As per CAIT memorandum for demand, small traders and MSME are facing problems due to higher rates of GST. If GST is nor rationalised, it will have adverse impact on trade.
Main demand includes relief up to Rs 30,000 in GST on items like stationery, processed food items like namkeen, biscuit, ice cream, cosmetics, dry fruits, textile, mobiles.
Similarly, GST should be reduced from 12%-18% to 5% on EV parts, agriculture equipment, bicycles, toys, TV (32 inch), utensil etc.
GST should be reduced from 28% to 18% on cement, tyres, vehicles, carbonated beverages, ACs etc. The composite scheme benefit should be given on ice cream.
Dharmendra Sharma, district president of CAIT, said, “Beverages alone account for nearly 30% of sales volumes for small kirana stores. However, the current higher tax on carbonated beverages has constrained liquidity and reduced earnings potential for small sellers, though these products being among the highest turnover items.
Beverages are mass-consumption items sold primarily by small traders who work on very narrow margins. Rationalising GST on this category will ease their operating pressures, improve their earnings, and accelerate formalisation of the sector.”
