Rice exporters ask Centre to correct GST anomaly on registered brands

Posted by Daily Shipping Times on 07-08-2017        Tweet

NEW DELHI: Rice exporters have asked the Centre to remove a “gap” in the GST rules that allow premium basmati rice with unregistered brands to not pay the tax while imposing a 5 per cent burden on registered brands even if the rice is low value.

“We request you to kindly see how easily traders are using the gap in the notification to evade GST by using new company names but same brand, or even by getting their premium brands deregistered,” Vijay Setia, President of the All India Rice Exporters’ Association (AIREA), pointed out in a letter to Revenue Secretary Hasmukh Adhia.

As per industry estimates, around 17 per cent of the rice in the Country is sold under registered brands.

Interestingly, some well-known rice brands such as India Gate are reportedly not registered and hence escape the GST net.