GST rate hike is causing concern says Trade and industry groups

Trade and industry groups have raised concern about a potential increase in the Goods and Service Tax (GST), claiming that it will disproportionately harm the general public. They warned that raising taxes will exacerbate the inflationary tendency.

According to the Agro Food Chamber of Commerce and Industry, the Union Finance Ministry made a policy decision in November 2017 to keep only super luxury, demerit, and sin goods under the 28 percent GST rate, while more than 200 products ranging from chewing gum to chocolates, beauty products, and wrist watches were shifted from the 28 percent slab to 18 percent and lower rates, providing relief to consumers and businesses. The finance ministry is breaking its own promise by considering bringing back 143 commodities from the 18 percent to 28 percent tax bracket, such as wrist watches, suitcases, televisions, chocolates, non-alcoholic beverages, and other exempted food items, from the 18 percent to 28 percent tax bracket.