Rice millers across the State and Agricultural Produce Marketing Committee (APMC) Yard, Yeshwanthpur, Bengaluru, will shut down on Friday, as a protest against the Union government’s decision to levy 5% GST on all packaged and labelled food products, even if unbranded, essentially covering most of the essential food items. The Finance Ministry issued notification of the new GST rules on Thursday.
The move will lead to inflation, make small retailers in the unorganised sector uncompetitive, and even affect farmers, industry insiders allege. Farmers also petitioned Chief Minister Basavaraj Bommai, a member of the GST Council, against the 5% GST on food products.
Ramesh Chandra Lahoti, vice-president, Federation of Karnataka Chambers of Commerce and Industry, and a foodgrain merchant, said post the GST regime in 2017, a majority of brands went unbranded to avoid coming under the tax net. “Today, most of what I sell in the shop is unbranded. In an attempt to bring these under the tax net, the government has imposed a blanket 5% GST on all packed and labelled food items, without understanding the market clearly. Now this will lead to a 5% price hike on almost all food articles, burdening the consumer,” he said.
