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Resource centre on India's rural distress
 
 

Rice price may go up by Rs 5/kg due to 5% GST

-The New Indian Express

Based on the recommendation of the GST Council, the Centre has issued notifications bringing essential commodities including rice and maize under 5% GST slab from July 18.

MADURAI: The decision of the Union government to levy 5% Goods and Services Tax (GST) on packaged food may increase the price of rice by a minimum of Rs 3 to Rs 5 per kg from Monday, Tamil Nadu rice mills association and traders said on Saturday.  

Based on the recommendation of the GST Council, the Centre has issued notifications bringing essential commodities including rice and maize under 5% GST slab from July 18. All pre-packed and pre-labelled goods as defined under the Legal Metrology Act will attract the new tax.

More than 3,000 rice mills and thousands of rice merchants have urged the Centre to roll back the 5% GST and mills across the State were shut on Saturday as a mark of protest. Industry bodies have also urged that Chief Minister MK Stalin, as per the Supreme Court ruling which said that GST council recommendations are not binding on the States, must declare that Tamil Nadu will not accept the new 5% tax. State president of Tamil Nadu Vanigar Sangangalin Peramaippu Vikramaraja said the federation will hold a State-wide protest on July 22 demanding roll back of the tax.

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