Rice millers have reiterated their demand for removing rice from the ambit of the Goods and Service Tax (GST). 

D. Thulasingam, president, Federation of Tamil Nadu Rice Mill Owners and Paddy Rice Dealers Association, said that according to current rules, those buying in smaller packets of even few grams to 25 kg are unnecessarily taxed whereas bulk buyers are not as bags above 25 kgs are not charged any GST. 

“This is an essential good and in Tamil Nadu, a State where rice is the staple, it is not correct to tax it. People who buy in small bags of 5 kg and 10 kg are being charged 5% GST. The Central government should find some other mode to make this income,” he added. Some rice brands had changed their packet sizes to 26 kg from 25 kg to avoid taxation.

Federation Secretary A. C. Mohan said the organisation had been submitting petitions and meeting officials before and after every GST Council meeting. “Though officials agree with us, the issue cannot be taken up in the GST Council by just one State. We need the support of six States,” he explained. 

The Federation is also concerned about rice bran or thavudu being taxed 5% if sent to oil mills for making rice bran oil. “If bran is sent to be made into cattle or poultry feed, it does not attract any tax. We get about 750 grams of bran from a bag of paddy,” Dr. Mohan added.

Source : The Hindu