MADURAI: The proposed move to enhance the lowest GST tax slab from 5% to 8% will hit very badly the trade and industry sector which is already reeling under severe crisis post pandemic and the general public will also be affected since the prices of essential commodities would go up considerably, the Tamil Nadu Chamber of Commerce and Industry has cautioned.
The TN Chamber has urged the GST Council to instead the revamp the structural problems faced by trade and industry in the GST regime by rationalizing the GST tax rates into four slabs- 5%, 10%, 15% and 28%.
Mr.N.Jegatheesan, president, TN Chamber of Commerce and Industry, has issued an urgent press statement from Madurai on 7th March 2022 appealing to the GST Council and the Union Finance Ministry to desist from raising the 5% tax slab rate to 8%. “Due to COVID pandemic lockdown, the trade and industry sector got paralyzed, especially the MSMEs. They are now slightly recovering from the crisis. So, it is not right to enhance the GST slab rate from 5% to 8%. The trade and industry is shocked and perturbed,” he said.
Mr.Jegatheesan has appealed to the GST Council to understand the pain of trade and industry sector and said that the recommendation of levying taxes on goods and services which are currently in the tax exemption list or enhancing the lowest tax slab from 5% to 8% will spell severe crisis.
“The GST has now five tax slabs viz 0 per cent, 5%, 12%, 18% and 28%. Essential commodities are either exempted ot taxes at the lowest slab of 5% while luxury/ demerit goods attract the highest slab of 28 per cent. The GoM Council now intends to amend the GST tax slab into three tier structure of 8%, 18% and 28%. This will affect the 12 per cent slab category goods and services. We request the GST Council to rationalize the GST tax rate slabs into four slabs and keep the 5 per cent category as it is,” the TN Chamber president Mr.Jegatheesan has said in the press statement issued from Madurai.
