KASSIA, a trade body that represents small, medium and micro enterprises in the State, on Wednesday appealed to the GST Council not to consider any proposal to raise the lowest tax slab to 8% from 5%.
Any move towards a three-tier structure such as 8%, 18% and 28% would result in goods in the low tier, at 5% presently, to shift to 8% which would lead to a spike in the price of essential commodities, cautioned P. Shashidhar, president, KASSIA.
Further, such a move would also increase the tax on goods in the second tier by 6%, by being moved up from 12% to 18%, which would mainly hit the micro and small scale enterprises hard, he explained.
