Vijayawada: Andhra Pradesh Chambers appeals to GST Council to consider GST rates

Vijayawada (NTR district) : Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers), in a letter to the Chairperson of GST Council on the increase in the rate of GST on essential food items, stated that the decision taken in the 47th GST Council meeting to increase the GST on cereals and pre-packaged food items is an additional burden on the citizens.

In a letter to the Union government on Thursday, the AP Chambers stated, “The introduction of 5 per cent of GST on pre-packaged and labelled pulses and cereals like rice and wheat, curd, paneer, lassi, jaggery, honey, puffed rice and flour made regular food items expensive for common man. The GST of 12 per cent on all forms of mango, including mango pulp and jelly, will affect the prices of mango-based food products and drinks and would dent the revenues of small entrepreneurs.”

“Similarly, the hike in the rate of GST from 12 per cent to 18 per cent on aseptic packaging paper used for packaging liquid beverages or dairy products will directly impact the consumption of beverages. In addition to this, the levy of 5 per cent GST on pre-packaged and labelled meat and fish will further burden the food consumption of the common public. The introduction of a 5 per cent GST on many food items will affect the purchasing power of the citizens and will impact the consumption of food products. The new GST rates have added more woes to the ever-increasing households’ budgets.

They will impact household demand and consumption patterns adversely. High inflation in the essential items would make consumers shift to lower-priced products and it can adversely impact the demand for non-essential items as well,” stated Chambers.

AP Chambers requested the GST Council to take into consideration all these factors and revise the GST rates on food items to rates prior to the 47th GST Council meeting.