Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) president Pydah Krishna Prasad, on Wednesday, wrote to the Chairperson of GST Council on the increase in the rate of GST on essential food items. He stated that the decision taken in the 47th GST Council meeting to increase the GST on cereals and pre-packaged food items was an additional burden on the citizens.
The Chambers opined: “The introduction of five per cent of GST on pre-packaged and labeled pulses and cereals like rice and wheat, curd, paneer, lassi, jaggery, honey, puffed rice and flour made regular food items costlier for the 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 dent the revenues of small entrepreneurs.
“Similarly, the hike in 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 five per cent GST on pre-packaged and labeled meat and fish will further burden the food consumption of the common public. The introduction of five per cent GST on many food items will affect the purchasing power of the citizens and will impact the consumption of food products.
These new GST rates have added more woes to the ever-increasing households’ budgets. 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, said AP Chambers president Krishna Prasad.
