Traders urge FM not to go for 35% GST slab
Indian Sellers Collective, an umbrella body of trade associations and sellers across the country, has urged the Finance Minister and the GST Council not to accept some of the GST rate rationalisation suggestions, including the proposal for inclusion of a special rate of 35 per cent on some products.
The sellers’ body is of the view that a fifth GST slab of 35 per cent on demerit goods such as aerated beverages, cigarettes and tobacco, and pricing-based rate structure will materially and fundamentally alter the country’s GST framework with devastating outcomes.
“On the contrary, it will hurt the profit margins of the retailers, lead to compliance nightmares and fuel a parallel economy. This move will primarily benefit Chinese producers who dominate the market of cheap products at the cost of Indian producers,” it said. There will be permanent damage to the vast age-old retailer network, a member said.
