Due to the notification of GST issued by the central government on Thursday, the expenses of the common man will increase once again. Non-branded pre-packaged foodgrains, pulses and cereals, as well as pre-packaged curd, butter milk and lassi, which were so far outside the ambit of GST, will be taxed at five per cent. All these things are sold in bulk in local grocery stores.
Trade unions have called a one-day strike on Saturday against this decision of the central government. "We will protest this decision across the country. We have given a statement to the GST commissioner raising many questions," said Sharad Maru, president of Grain, Rice and Oilseed Traders Association.
Due to this decision, prices of grains and pulses may increase by 8-10 percent instead of 5 percent. A trader said, “Small shopkeepers have to hire experts to file returns and pay service charges on receipt of GST number.
Milk producers will pass the burden on to consumers. RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (Amul), informed that they will increase the rate by 5 percent from July 18.
"There is no option but to increase the rates. We cannot bear this extra cost. But I think curd, butter milk and lassi are consumed by the common man. These are not luxury items. Moreover, local retailers are delivered fresh twice daily. So The burden of e-way billing will increase. Even though the volume is high, the profit margin is low. Small sellers will now have to hire experts to file monthly GST returns and this will be troublesome and costly", said Aso Sodhi.
Manish Bandleesh, MD, Mother Dairy Fruit and Vegetable, said, "This could impact consumers." Govardhan Dairy, which is a private brand and not a cooperative, is already paying 5 percent GST and welcomes the tax to competitors. Devendra Shah, Chairman, Parag Milk Foods, said, "Now all the players will share a single platform, promoting healthy competition."