VIJAYAWADA: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has urged Union Finance Minister and GST Council Chairperson Nirmala Sitharaman to review key decisions made during the 56th GST Council meeting.
In its representation, Andhra Pradesh Chambers welcomed the GST 2.0 reforms, noting their positive impact on the middle class and consumption, but sought reconsideration of certain issues affecting MSMEs.
It highlighted that fruit pulp-based carbonated beverages were wrongly classified under the 40 per cent GST slab, impacting small and medium manufacturers in agrarian States like Andhra Pradesh, Tamil Nadu, and Maharashtra.
These drinks, made from real fruit pulp, support farmers and processors, and should not be taxed like synthetic colas, it said.
The Chambers urged the Council to reduce GST on such beverages to 18 per cent to promote agri-based value addition and MSME growth.
It also flagged financial hardship for hoteliers due to withdrawal of Input Tax Credit despite the reduced 5 per cent GST on rooms under Rs 7,500.