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GST: Wheat, rice prices likely to come down

Commodities like edible oil, tea, coffee and sugar are also likely to cost less

Sanjeeb Mukherjee & Rajesh Bhayani  |  New Delhi/Mumbai 

Rice price likely to come down as GST comes into effect
Rice price likely to come down as GST comes into effect

Foodgrain such as wheat, rice and pulses might become cheaper after the goods and services tax (GST) system kicks in later this year, as the Council has decided to keep them zero-rated under the new tax regime.

Commodities like edible oil, tea, coffee and sugar are also likely to cost less as the proposed five per cent tax is either lower than the existing taxes in most places or is same as the currently levied value added tax (VAT).

For cereals, some industry players said unless something was done about the mandi tax and cess, just keeping them zero-rated under the regime might have nominal impact. 

The government claimed that in many cases, the total incidence of taxation went up to 11 per cent. 

“A bigger impact would be known once the rates on processed food are revealed,” said Veena Sharma, secretary of Roller Flour Millers Association of India. 

B V Mehta, executive director, Solvent Extractors’ Association of India (SEA), a lobby group of edible oil traders, said that though they had represented the government to keep edible oils zero-rated in line with foodgrains, the proposed five per cent tax was also not a big letdown, as in most states they were already paying five per cent as VAT. 

rice, commodities
Some time ago, Maharashtra raised the VAT to 6 per cent.

On coffee, Ullas Menon, secretary general, United Planters Association of Southern India (UPASI), the apex body of the plantation crop growers in the south, said the five per cent for coffee and tea was reasonable and that was what industry also expected. Current average was around four per cent. 

Rohan Colaco, a former executive committee member of Karnataka Planters Association, termed the tax reform as something which would be beneficial in the long-run.

N Dharmaraj, wholetime director and chief executive, Harrisons Malayalam Ltd, a RP Goenka Group company, thanked the government for fixing the on tea at five per cent. 

Sugar industry, meanwhile, said the proposed five per cent tax was on expected lines and considering the current ex-factory of Rs 3,600 a quintal, the new won’t make much of a difference either for mills or consumers. 

(With inputs from TE Narasimhan)

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GST: Wheat, rice prices likely to come down

Commodities like edible oil, tea, coffee and sugar are also likely to cost less

Commodities like edible oil, tea, coffee and sugar are also likely to cost less
Foodgrain such as wheat, rice and pulses might become cheaper after the goods and services tax (GST) system kicks in later this year, as the Council has decided to keep them zero-rated under the new tax regime.

Commodities like edible oil, tea, coffee and sugar are also likely to cost less as the proposed five per cent tax is either lower than the existing taxes in most places or is same as the currently levied value added tax (VAT).

For cereals, some industry players said unless something was done about the mandi tax and cess, just keeping them zero-rated under the regime might have nominal impact. 

The government claimed that in many cases, the total incidence of taxation went up to 11 per cent. 

“A bigger impact would be known once the rates on processed food are revealed,” said Veena Sharma, secretary of Roller Flour Millers Association of India. 

B V Mehta, executive director, Solvent Extractors’ Association of India (SEA), a lobby group of edible oil traders, said that though they had represented the government to keep edible oils zero-rated in line with foodgrains, the proposed five per cent tax was also not a big letdown, as in most states they were already paying five per cent as VAT. 

rice, commodities
Some time ago, Maharashtra raised the VAT to 6 per cent.

On coffee, Ullas Menon, secretary general, United Planters Association of Southern India (UPASI), the apex body of the plantation crop growers in the south, said the five per cent for coffee and tea was reasonable and that was what industry also expected. Current average was around four per cent. 

Rohan Colaco, a former executive committee member of Karnataka Planters Association, termed the tax reform as something which would be beneficial in the long-run.

N Dharmaraj, wholetime director and chief executive, Harrisons Malayalam Ltd, a RP Goenka Group company, thanked the government for fixing the on tea at five per cent. 

Sugar industry, meanwhile, said the proposed five per cent tax was on expected lines and considering the current ex-factory of Rs 3,600 a quintal, the new won’t make much of a difference either for mills or consumers. 

(With inputs from TE Narasimhan)

image
Business Standard
177 22

GST: Wheat, rice prices likely to come down

Commodities like edible oil, tea, coffee and sugar are also likely to cost less

Foodgrain such as wheat, rice and pulses might become cheaper after the goods and services tax (GST) system kicks in later this year, as the Council has decided to keep them zero-rated under the new tax regime.

Commodities like edible oil, tea, coffee and sugar are also likely to cost less as the proposed five per cent tax is either lower than the existing taxes in most places or is same as the currently levied value added tax (VAT).

For cereals, some industry players said unless something was done about the mandi tax and cess, just keeping them zero-rated under the regime might have nominal impact. 

The government claimed that in many cases, the total incidence of taxation went up to 11 per cent. 

“A bigger impact would be known once the rates on processed food are revealed,” said Veena Sharma, secretary of Roller Flour Millers Association of India. 

B V Mehta, executive director, Solvent Extractors’ Association of India (SEA), a lobby group of edible oil traders, said that though they had represented the government to keep edible oils zero-rated in line with foodgrains, the proposed five per cent tax was also not a big letdown, as in most states they were already paying five per cent as VAT. 

rice, commodities
Some time ago, Maharashtra raised the VAT to 6 per cent.

On coffee, Ullas Menon, secretary general, United Planters Association of Southern India (UPASI), the apex body of the plantation crop growers in the south, said the five per cent for coffee and tea was reasonable and that was what industry also expected. Current average was around four per cent. 

Rohan Colaco, a former executive committee member of Karnataka Planters Association, termed the tax reform as something which would be beneficial in the long-run.

N Dharmaraj, wholetime director and chief executive, Harrisons Malayalam Ltd, a RP Goenka Group company, thanked the government for fixing the on tea at five per cent. 

Sugar industry, meanwhile, said the proposed five per cent tax was on expected lines and considering the current ex-factory of Rs 3,600 a quintal, the new won’t make much of a difference either for mills or consumers. 

(With inputs from TE Narasimhan)

image
Business Standard
177 22