Nation Other News 13 Jun 2017 Cashew sector cheers ...

Cashew sector cheers scaling down GST slab

DECCAN CHRONICLE. | SHAM MOHAMMED
Published Jun 13, 2017, 2:41 am IST
Updated Jun 13, 2017, 2:41 am IST
It was brought down from existing 12 % GST and would, in turn, make the biz more profitable.
Cashew
 Cashew

Kollam: The Cashew sector in the country will see a major boost with the implementation of 5 per cent GST, brought down from the existing 12 per cent, because it can evade the Special Additional Duty (SAD) that will be replaced by IGST on imports, making cashew processing more profitable within the country.
The Federation of Indian Cashew Industry (FICI) has welcomed the decision of the GST council to fix the GST of raw Cashew, cashewnut and allied products in the 5 per cent slab of the proposed new tax.  Earlier, the GST council had fixed the GST for cashew at 12 per cent, clubbing it along with other tree nuts. This anomaly was pointed out by FICI and other associations including the Cashew Export promotion Council of India requesting it be placed under the 5 per cent slab.

“Prior to GST(which comes into effect on July 1), only traders could claim back 4 per cent SAD of the total 9.36 per cent tax, but not processors. The only disadvantage is that if we purchase cashew from local traders we should pay tax while buying and claim while exporting. There was tax exemption if cashew was transferred to own inter-state firm of the same company, but now it is not considered as ‘transfer’ but should be mentioned as ‘sales’,” Dr. R.K. Bhoodes, Cashew Export Promotion Council of India (CEPCI) Vice Chairman, told DC. For the import of cashew processing machinery, the fixed 20 per cent duty should be paid in advance, against an earlier system of signing a commitment to export cashew worth six times the amount of relaxation given.

 

“Earlier it was claim in advance but now it is pay in advance then claim afterwards, likewise is the case for importing raw cashew. It increases working capital,” Mr. Bhoodesh adds. FICI also has requested the GST council to fix the tax on value added cashew kernels (roasted, salted, spice/honey coated) at 5 per cent at par with cashew kernels and sweets made of cashew, which are currently at 5per cent structure of GST.  FICI has also requested the Union Government to restore export incentives back to 5 per cent from the present level of 3 per cent that was reduced in the present Foreign Trade Policy.

 

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Location: India, Kerala




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