THIRUVANANTHAPURAM: Provision shops which follow the ‘outdated’ practice of weighing commodities in front of the customer may get more takers in the coming days.
For, the loose sale is exempted from the 5% GST on pulses, cereals and flour which came into effect on Monday.
These items up to a quantity of 25kg would attract GST only when “prepackaged and labelled”, thereby coming under the purview of the Legal Metrology Act, 2009.
Putting an end to confusion over the mode of levying new tax, the Central Board of Indirect Taxes and Customs on Monday clarified that if retail shopkeeper supplies in loose quantity, the item bought from a manufacturer or a distributor in a 25kg pack, such sale to consumers wouldn’t attract GST.
Purchases from supermarkets and other shops where the commodities are available in packets have become costlier. Even if they are packed by the shopkeeper for the customer’s convenience, it will be taxed.
The legal metrology department’s monitoring of shops has gained more relevance in this context.
Because, as per the LM Act, prepackaged items are required to have a label with specific details, including name and address of the manufacturer or packer, month and year of packing, quantity in weight, measure or number, maximum retail price inclusive of all taxes and customer care phone number.
“Provisions of the LM Act are applicable to pre-packed commodities. Cereals, pulses or flour packed in the presence of the customer are exempted. But pre-packed items, including sealed packets or those fastened with a rubber band or jute twine should have the mandatory label,” said an officer of the LM department.
The Confederation of All India Traders has expressed concern over the new taxation.
“This is against the interests of consumers. This has paved the way for the online majors to capture the food and milk markets. Small-scale traders will also face harassment by tax and legal metrology officers,” said CAIT national secretary SS Manoj. The state unit of the CAIT on Monday staged a protest in front of the central GST office in Thiruvananthapuram.
Meanwhile, the Rice Mill Owners Association has warned of a cascading effect on the prices of rice. “Medium and small-scale mill owners will be hit by the taxation. The prices of rice flour products will also go up,” said its state president KP Karnan.
Until Monday, only branded goods, which mean items in packets bearing a registered brand name, came under the tax ambit.
Only a small section of businesses in the manufacturing of rice and rice flour in the state have a registered brand name.
RICE PRICES INCREASE ONLY IN TWO DISTRICTS
Except for two districts, rice prices did not show any significant variation on Monday. The prices of Kuruva and Bodana rice varieties increased by D2 per kg in Malappuram.
The prices of Nadan and Matta varieties increased by Rs 2 a kg in Idukki. The price of green gram went up by Rs 5, and toor dal by Rs 2, both per kg, in Thiruvananthapuram.
The price of wheat and wheat flour rose by D2 a kg in Kannur, shows the data with the economics and statistics department.