GST: Dry fruit import from Pak hit

AMRITSAR: Even as tension between India and Pakistan due to rampant ceasefire violations at the border has taken a toll on the trade between the two nations disparity in the Integrated Goods and Services Tax IGST structure has further hampered the imports through the AttariWagah route

Updated At : 06:55 AM Jul 20, 2017 IST

GS Paul

Tribune News Service

Amritsar, July 19

Even as tension between India and Pakistan due to rampant ceasefire violations at the border has taken a toll on the trade between the two nations, disparity in the Integrated Goods and Services Tax (IGST) structure has further hampered the imports through the Attari-Wagah route.

An upward revision of tax on imported almonds and other dry fruits from 4.95 per cent to 12 per cent in the new tax regime has hit the imports of these products.

Due to increase in duty, the almond prices have jumped from Rs 620 to Rs 700 per kg.

The Chambers and Dry Fruit Merchants Association have suggested the GST Council to bring parity in GST rates immediately.

Ajay Wadhwa, a leading dry fruit merchant based at Majith Mandi, said in case the government did not reduce the GST on almonds from 12 per cent to at least 4 per cent, the coming festival and marriage season would be disastrous for dry fruit businessmen as buyers were not currently placing any orders. “The government had bowed to the pressure from the cashew nut lobby in Kerala and raisin producers in Maharashtra and kept the tax on the products to 4 per cent. Almonds and other dry fruits fall in the 12 per cent GST bracket. The disparity has virtually brought the dry fruit trade to a standstill in the wholesale market,” he said.

Suneet Kochhar, Chairman, ASSOCHAM, Punjab, opined that GST, if implemented under uniform tax policy, would simplify the earlier multiple taxes imposed by the Centre as well as the state government.

Confusion prevails among importers and exporters, who have booked orders during pre-GST regime as the tax structure has revised.

Customs clearance agent Manav Taneja said all services, including labour, handling and other operations, at the Integrated Check Post handling goods trade with Pakistan and Afghanistan had become expensive with the Service Tax component having been increased from 15 per cent to 18 per cent. “There is no clarity on tax structure. Those who have placed orders in June were unsure of handling, transport and labour charges. Hopefully, things will become clear by the end of this month,” he said.