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Punjab CM seeks GST rollback on packed food

Punjab Chief Minister Amarinder Singh has written to Union Finance Minister Arun Jaitley seeking immediate withdrawal of five per cent…

Punjab CM seeks GST rollback on packed food

Representational image (Photo: Getty Images)

Punjab Chief Minister Amarinder Singh has written to Union Finance Minister Arun Jaitley seeking immediate withdrawal of five per cent goods and services tax (GST) on food stuff in containers intended for free distribution to the economically weaker sections of the society.

Dubbing the imposition of this tax as a retrograde step, Amarinder stressed the need to introduce welfare programmes for the economically weaker sections (EWS) at a time when farmers were reeling under debt and resorting to suicide, underlining the increasing gap between the rich and the poor.

Citing the draft notification on this new tax, received by his government from the GST Council, the CM said such a tax would have the sole effect of the State Government being taxed by the Central Government for running welfare schemes, as the state governments would be required to pay Central GST (CGST) on such items.

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Seeking Jaitley’s personal intervention in the matter, Amarinder demanded a review of the decision and rollback of the decision in larger public interest, according to an official spokesperson.

The GST Council, in its 22nd meeting on 16 October, 2017, decided on a five per cent GST on food preparations put in unit containers, meant for free distribution to economically weaker sections of the society.

Under the notification, CGST has been pegged at 2.5 per cent and the state government will also be charged at the same rate.

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