Retailers Oppose 35% GST Slab, Urge Finance Minister and Council to Reconsider

Last updated: 14 December 2024

Save Share

Quick Summary

A coalition of Indian retailers, the Indian Sellers Collective, has voiced strong opposition to a proposed 35% GST slab for demerit goods like cigarettes and aerated drinks. They argue this would disrupt the GST framework, harm small businesses, increase compliance burdens, and potentially boost illicit markets and smuggling. The group is urging the Finance Minister and GST Council to reconsider these recommendations ahead of their upcoming meeting.

The Indian Sellers Collective, a coalition of trade associations and sellers across India, has strongly opposed the proposal for a fifth GST slab with a 35% rate on demerit goods like aerated beverages, cigarettes, and tobacco. Ahead of the 55th GST Council meeting scheduled for December 21, 2024, in Jaisalmer, Rajasthan, the group has urged the Finance Minister and the GST Council to reject the recommendations, calling them detrimental to the Indian retail ecosystem. In a statement issued on T

Daily Limit Reached

You have reached your daily limit of 2 Free News

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited News Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

The Indian Sellers Collective is opposing the proposal for a fifth GST slab with a 35% tax rate on demerit goods such as aerated beverages, cigarettes, and tobacco.

They believe it will harm profit margins, complicate compliance, encourage a parallel economy, hurt small and mid-tier sellers, benefit Chinese producers, and make products unaffordable for consumers, driving them to illicit alternatives.

Consumers may face unaffordable prices for products like aerated drinks and cigarettes, potentially leading them to choose smuggled or illicit goods.

The collective warns that it could cause irreversible damage to the traditional Indian retail network, which is already facing pressure from e-commerce.

They are urging the Finance Minister and the GST Council to reject the recommendations for the 35% GST slab and to maintain a streamlined GST structure that supports domestic sellers.

The 55th GST Council meeting is scheduled for December 21, 2024, in Jaisalmer, Rajasthan.

1731 Views Comment Share GST Report

News posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

View News

Comments :