Commercial Tax Minister demands GST Exemption on Rice Bags

Minister for Registration and Commercial Taxes P Moorthy urged on Tuesday that the central government exclude rice bags from GST.

“Poor people have been burdened by the GST levied on rice up to 25 kg, which is commonly purchased by everyone. We will raise this issue at the GST council,” he told reporters in Coimbatore.

Earlier, Moorthy spoke at a meeting to raise awareness about the ‘Samadhan Scheme’ with traders from the divisions of Coimbatore, Tirupur, Erode, Salem, and Hosur.

“The entire amount has been waived off for 95,000 traders with arrears, including tax, interest, and penalty for up to Rs.50,000. They are not required to file a declaration. Other traders and businesses can pay a reduced rate under other categories,” he explained.

Furthermore, Minister Moorthy stated that the initiative has waived a total of Rs.20,000 crore, with traders only required to pay the remaining Rs.5,000 crore to the government.

“This is a historic accomplishment. The plan would benefit traders who have been unable to repay debts for the past 12 years. The scheme is being promoted to small and marginal traders,” he stated.

He urged traders to follow the law in order to avoid prosecution, claiming that about 90% of them are legitimate and only 10% are evading taxes.