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  • Plantation industry voices concern at the impact of GST

    Aug 3rd, 2016

    The plantation industry is apprehensive about the roll- out of GST as it feels the new tax regime may increase the prices. The commodities like spices and cashew have a single tax rate now and the arrival of GST may see it go up."Currently there is only 5 % VAT on pepper and other spices, of which 3% is refundable. The GST is likely to be 12% which could hit registered traders hard," said Anand Kishor, president of India Pepper and Spice Trade Association, adding that it would ultimately impact the consumers as the retail prices would go up.

    Cashew sector is also sceptical about the success of GST in the sector as it is having a single tax. "We have just 5 % tax. GST may be good where there is multiple taxation. Otherwise it could lead to higher price," said K Prakash Rao, managing partner of Kalbavi Cashews which has a strong presence in the domestic market. India is currently largest consumer of cashews

    On the other hand, the user industry, rubber products units for instance, which are suffering from multiple taxation are of the view that GST will be beneficial as a single tax could replace several taxes."We currently have to pay excise duty, service tax, VAT etc. It could be replaced by a single tax which could be close to what we are paying now. But the processing will be easier and clerical work will be considerably reduced as it is a single tax," said Mohinder Gupta, president of All India Rubber Industries Association.


    Source: http://economictimes.indiatimes.com