Retailers Urge Finance Ministry and GST Council to Reject 35% Tax Proposal
Indian Sellers Collective Warns of Economic Impact Ahead of GST Council Meeting
The Indian Sellers Collective, which represents trade associations and sellers nationwide, has urged the Finance Ministry and GST Council to reject the proposed 35% tax. The group warned that such a tax on demerit goods like tobacco, aerated beverages, and cigarettes could disrupt India’s GST framework. Moreover, it could lead to severe consequences for retailers, particularly small and mid-tier sellers.
Retailers Push Back Against GST Council’s 35% Tax Proposal
Fears of Compliance Issues and Economic Disruption Ahead of Key Meeting
Retailers have voiced strong objections to the proposed 35% tax on demerit goods. They are urging the Finance Ministry and GST Council to reconsider the measure. The Indian Sellers Collective emphasized that this change would erode profit margins. Furthermore, it would increase compliance challenges and fuel the growth of a parallel economy.
Indian Retailers Warn of Devastating Impact of 35% GST Tax Rate
Tax Body Claims It Will Harm Retailers and Benefit Foreign Producers
Ahead of the 55th GST Council meeting on December 21, the Indian Sellers Collective issued a stark warning. The proposed 35% tax on demerit goods, they claim, will disrupt the retail industry and increase illicit trade. Additionally, the tax could harm Indian producers while benefiting foreign manufacturers. The organization also expressed concerns about small businesses. Specifically, they warned of rising compliance costs and the risk of further weakening traditional retail.
