Rajasthan CM explains that the state had ‘strongly opposed’ the levy, which would give a tough fight to the people
Rajasthan CM explains that the state had ‘strongly opposed’ the levy, which would give a tough fight to the people
Rajasthan Chief Minister Ashok Gehlot has urged Finance Minister Nirmala Sitharaman to reconsider the move GST on non-branded and pre-packaged food itemsThe state had “vigorously” opposed the levy in a letter sent earlier this month, saying it was “going to hit the people hard”.
Mr Gehlot said the state had made a request to the GST Council as well as its Group of Ministers (GoM) led by Karnataka Chief Minister BS Bommai, which had proposed a tax on non-branded food items like curd. Lassi and food grains, to postpone the deliberations on these levies as it was “not the right time” after the COVID-19 pandemic.
On July 19, a day after GST was rolled out on these items, Ms Sitharaman had said the decision was taken unanimously with the consent of all states at a meeting of the GST Council in late June, and was aimed at large-scale taxation. Theft was to be stopped. He had said that these food items remain tax-free when sold in the open, he had said, at one point he insisted in Parliament during a debate on price hikes that the poor would not be taxed.
In an August 5 message to Ms Sitharaman, Mr Gehlot has said that the increase in GST rates on pre-packaged and labeled products like buttermilk, jaggery, cereals and flour will cause huge losses to the people. He said that though these items are consumed by all sections of the society, even the people from low income group will face more hardship.
Asking the Finance Minister to refer to the minutes of the meetings of the GoM held in November 2021 and June 2022, the CM of the Congress-ruled state wrote: “You will remember that the Rajasthan government had constituted for all the meetings of the GoM. Rate The deliberations on rationalization had strongly opposed any upward revision of tax rates.We had requested the Council as well as the GoM that post COVID, it is the right way to increase the tax burden. There is no time and deliberations should be deferred for at least a year.”
This stance, he said, was reiterated in the 47th meeting of the council in Chandigarh, but the taxes were notified by the Center on July 13 based on the council’s recommendations. The Rajasthan CM said, “Though the state had to issue a corresponding notification to give effect to the unified rate structure, we are not in favor of this upward revision.”
“… I would like to urge you to reconsider this amendment and again take up the agenda for deliberation in the meeting of the GoM/GST Council for restoration of the tax structure in force before 18th July, 2022, Mr Gehlot concluded.