Sitharaman Says that GST on Everyday Items Imposed After Nod From All States

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Sitharaman Says that GST on Everyday Items Imposed After Nod From All States
20 Jul 2022
6 min read

News Synopsis

Faced with criticism over GST on everyday items, Finance Minister Nirmala Sitharaman said on Tuesday that the 5% tax was imposed after approval from all states, including non-BJP-ruled states. She stated that the non-BJP-ruled states of Punjab, Chhattisgarh, Rajasthan, Tamil Nadu, West Bengal, Andhra Pradesh, Telangana, and Kerala had agreed to impose the 5% tax.

Sitharaman stated in a series of tweets that states levied sales tax or VAT on foodgrains prior to the Goods and Services Tax (GST) regime, and that the current levy on cereals, pulses, flour, curd, and lassi is an effort to reduce tax leakage. She stated that the decision was reached by consensus by the GST Council, which includes representatives from all states.

The minister's remarks come as the first two days of Parliament's monsoon session were virtually washed away due to vociferous protests by Opposition parties over the GST on everyday items and other issues.

"Is this the first time such food articles are being taxed? No. States were collecting significant revenue from foodgrain in the pre-GST regime. Punjab alone collected more Rs 2,000 crore on food grain by way of purchase tax. UP collected Rs 700 crore," she said.

To support her point, Sitharaman cited VAT on rice levied prior to 2017 in Punjab, Telangana, Uttar Pradesh, Andhra Pradesh, Kerala, and Bihar.

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