‘GST must not make processed food costlier’
The Goods and Services Tax (GST) regime must ensure that processed food does not become costlier as it could have an adverse impact on the nutrition levels of the population as well as farm sector incomes, industry representatives said. “Value addition in the food processing sector is a catalyst for agricultural sector thus leading to inclusive growth and it is important to keep food products at the lowest tax slab,” said Piruz Khambatta, Co-Chairman, National Committee on Food Processing at the Confederation of Indian Industry (CII).
Making a case for keeping packaged food products costing less than Rs.10 at the retail point of sale exempt from GST as they were meant for the poor, Mr. Khambatta said the tax rate should be half the revenue-neutral rate or about 8 per cent on packaged food products priced upto Rs.20 per unit.
“The rationale for this argument is based upon international practice for controlling inflation, reducing wastage of perishable food products and agriculture growth being catalysed by food processing growth,” he said on Wednesday.
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