AP Chambers Wants GST Council to Reconsider Key Issues
Specifically, the AP Chambers sought rationalisation of GST on fruit pulp-based aerated beverages, currently taxed at 40 per cent, including cess.
Vijayawada:Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has submitted a detailed representation to GST Council chairperson and union Finance minister Nirmala Sitharaman seeking reconsideration of certain decisions taken at the 56th GST council meeting.
In a representation submitted to the union minister through email and post, AP Chambers president Potluri Bhaskara Rao hailed the GST 2.0 reforms for boosting middle-class consumption and economic activity. At the same time, he flagged key concerns affecting MSMEs and service sectors.
Specifically, the AP Chambers sought rationalisation of GST on fruit pulp-based aerated beverages, currently taxed at 40 per cent, including cess. “This classification covers many fruit pulp-based drinks produced by small manufacturers in agrarian states like Andhra Pradesh and Tamil Nadu. The products are made from real fruit extracts,” Bhaskara Rao pointed out, suggesting that the rate be reduced to 18 per cent. This would encourage value addition and MSME growth.
On the hospitality front, AP Chambers noted that though GST on rooms under ₹7,500 have been cut from 12 per cent to 5 per cent, withdrawal of the Input Tax Credit (ITC) has burdened the hoteliers. The chambers called for restoration of ITC or a refund mechanism to avoid higher room tariffs and embedded taxes.
Bhaskara Rao highlighted the financial strain on automobile dealers due to the unutilised cess on pre-GST 2.0 stocks and requested for refunds or adjustments. He further sought tax reductions on business exhibitions and membership fees of industry bodies.
