• 16 Jul 2022 04:57 PM
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GST on food items: Traders hold protests; grain markets closed

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New Delhi's wholesale and retail grain markets were shut down on July 16 as a result of a protest by business owners against the GST Council's decision to impose a 5% GST on pre-packaged and labelled food items. Due to the market bandh called by traders, wholesale grain markets in Narela, Bawana, and other areas of the city seemed desolate. The city's retail grain markets were all shut down.

New Delhi's wholesale and retail grain markets were shut down on July 16 as a result of a protest by business owners against the GST Council's decision to impose a 5% GST on pre-packaged and labelled food items. Due to the market bandh called by traders, wholesale grain markets in Narela, Bawana, and other areas of the city seemed desolate. The city's retail grain markets were all shut down.

Naresh Kumar Gupta, president of the Delhi Grain Merchant Association, stated that it was the first time that non-branded food items had been included in the GST and that the move was not in the interests of consumers and business owners. He stated that the strike was a one-day symbolic protest and that any decisions regarding future strategy would be made afterwards.

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"We are against this decision. To protest against the move, we have decided to observe a bandh on Saturday. All shops dealing with grains are shut. We have requested Finance Minister Nirmala Sitharaman to keep food items out of the GST net. This decision should be rolled back," Gupta told PTI.

bandh was also observed by the traders in the APMC market in Navi Mumbai, Maharashtra. The GST Council's decision to impose GST on cereals, grains, and other pre-packaged and labelled food items prompted traders in Jammu to hold a protest march.

In order to rationalise the tax, the GST Council adopted the majority of recommendations made by a committee of state ministers in June about the removal of exemptions. In the meeting, it was decided that all goods, including pre-packaged and labelled meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, and puffed rice (muri), would no longer be exempt from GST and would instead be subject to a 5% tax.