Merchants urge to reduce GST on Lamp Oil:

Merchants urge to reduce GST on Lamp Oil City-based oil merchants have requested commercial taxes minister P Moorthy to propose to the GST council that the 12% GST on lamp oil be reduced to 5%, given that it is simply a blend of several oils that are taxed at 5%. According to the Madurai Oil and Oil Seeds Association, lamp oil can be classified as either scented or unscented for GST purposes. The association's petition stated that non-scented lamp oil is made by combining refined rice bran oil, castor oil, coconut oil, gingelly oil, refined palm oil, pungam oil, refined sunflower oil, and mahua oil. All of these kinds are taxed at 5%, whereas lamp oil is taxed at 12%. The correct way would be to tax scented lamp oil at 12%, as scents and fragrances are taxed at 12% and 18% respectively. The association said that scented lamp oil might be subject to 12% GST after averaging out smell taxes. The association also urged the minister to reduce the GST on ghee from 12% to 5% because it is a food item. Since GST was implemented seven years ago, there have been disputes and confusion in the system of taxation. As a result, there are numerous cases and penalties in the trading community. The state government launched a samadhan system to collect arrears by waiving penalties, and it may push the GST council to create a similar scheme for GST, which will be of enormous help to traders, according to the association.