CAIT urges review of GST rates for mass consumption categories

The Confederation of All India Traders (CAIT) on Thursday said it has requested Prime Minister Narendra Modi to revisit the proposed Goods and Services Tax (GST) structures for key categories of mass consumption.

In a letter to the Prime Minister's Office (PMO), the traders' body said: "The trading community of India is one with the government's resolve to usher in GST from July 1, 2017. We believe it's a watershed mark in the taxation history of the country, a decision which will result in long-term positive socio-economic outcomes for the country."

"We are also delighted that no less than your good self-sir, a well-known reformist who is known to take up issues which affect the common man, will consider our humble request for revisiting tax structures on items consumed by the teeming millions in this country," the letter said.

According to the traders' body, "for the man on the street", a GST-triggered structural price spike may go against the grain of the government's concerted push towards inclusive progress.

"Recent rate fitment exercises have, however, perhaps inadvertently resulted in bracketing items important from a health point of view or from a mass consumption point of view in slabs which are higher than where they should be placed," the letter said.

The CAIT observed that this could augur well for revenues but could fly contrary to the government's larger public policy and health objectives.

--IANS

ppg/nir/dg