The Federation of Tamil Nadu Rice Mill Owners and Paddy-Rice Dealers Associations has urged the Central government to not impose any Goods and Service Tax (GST) on rice.
At present, GST is being imposed even on unregistered rice brands that comes in packs from millers. “Since most customers are used to rice from a particular mill, they recognise them by the images on the bags. They wouldn’t even know the name of the mill or from where the rice comes. In most cases, these are local brands and the rice is sold in a particular area. These people would have been selling rice for several generations now under the same name,” said Association president D. Thulasingam. Association Secretary A.C. Mohan said that if GST for unregistered brands was to be waived, the government had directed them to print an undertaking on the bags that they will forgo any actionable claim over the brand/image on their bags. He said this was unfair and was like giving up their hard earned name among customers.
“These unregistered brands should not be treated on a par with Basmati rice,” he said. Mr. Thulasingam also added that non-Basmati rice was the staple of 60% of the population. “We have written to the Central government urging them to waive GST for rice regardless of brands,” he said.