CAMIT raises issue of 5% GST on essential items with Nitin Gadkari

Nagpur: Chamber of Associations of Maharashtra Industry & Trade (CAMIT) members met Union minister Nitin Gadkari and submitted a memorandum urging the Central government to withdraw recent implementation of 5% GST on essential items.
Gadkari assured to take up the matter with the Union finance minister and party leadership, as per CAMIT.
Dipen Agrawal, president of CAMIT and national vice-president of Bharatiya Udyog Vyapar Mandal (BUVM), said that upon conjoint reading of the provisions of Legal Metrology Act (LM Act) and Rules it can be seen that if goods are placed in package in absence of purchaser and in pre-determined quantity (as stipulated under Rule 5 r/w Schedule II) then only the goods shall fall under the definition of pre-packed commodities and attract the requirement of declaration u/s 18 of the Act.
The CAMIT president said that the FAQ issued by the administration is silent on this inconsistency between Rule 3 and Rule 26 of the Legal Metrology (Packaged Commodities) Rules, 2011.
“The LM Act stipulates that every pre-packaged commodity has to be manufactured, packed, imported or sold in such standard quantities or numbers as may be prescribed, if the consumer is not present while goods are placed in the package. The LM Act exempts from its ambit the packing of goods by the seller in presence of the consumer, presumably because the consumer is deemed to have taken care of the quality and quantity of the goods packed in his presence. However, under GST in addition to seller and purchaser the revenue department is also a stakeholder. Hence, the satisfaction of revenue officer that goods were packed in presence of purchaser and not in his absence shall give birth to endless litigation,” said Agrawal.
Agrawal further said that in 2017 the Fitment Committee after considering the then prevailing excise duty and value added tax for Goods and Service Tax and Value Added Tax for Services decided revenue neutral rate under GST for particular good or service. “Further, time and again nation was assured by government and administration that the goods and services exempted under erstwhile tax regimes shall continue to be exempted under GST. Agrawal further said that since independence no government has taxed subsistence consumption of its citizens. The tax on such consumption is against the ethos of welfare state,” he said.
He said that there is equal resentment among the farmers, business community and citizens. “There is confusion all over. Traders will be burdened with GST compliance. Farmers fear reduction in realisation. Citizens who are already facing the heat of inflation fear further dent in their household budget,” he said.