Withdraw 5% GST on food: Punjab CM

Dubbing it as a retrograde decision, Punjab Chief Minister Captain Amarinder Singh wrote to Union Finance Minister Arun Jaitley seeking immediate withdrawal of the five per cent GST on food items in containers intended for free-distribution.

In its 22nd meeting on October 16, the GST Council decided to impose five per cent GST on food preparations in unit containers, which were meant for free distribution to economically weaker sections (EWS) of the society. As per the notification, CGST was pegged at 2.5 per cent and the state government would also be charged at the same rate.

Highlighting that the state government would be required to pay CGST on such items, Captain Amarinder said imposition of such a tax would solely affect the state government, which will be taxed by the Central Government for running welfare schemes.

The Chief Minister, who had earlier urged Jaitley to simplify the process of GST implementation in view of the hardships being caused to the business and trading community, said Punjab had already been facing financial difficulties due to delay in release of GST payment from the Centre.

Dubbing the draft notification on this new tax, received by his government from the GST Council as retrograde, Amarinder said the gap between the rich and poor was already increasing. "There is an urgent need to introduce welfare programmes for the economically weaker sections (EWS) at a time when farmers were reeling under debt and resorting to suicide," he said.