Coffee exporters cautious ahead of GST rollout.

As the government gears up to roll out the Goods and Services Tax from Jul 1, coffee traders are treading cautiously, unsure of its potential impact. Exporters and domestic traders are not taking long positions and are buying only hand-to-mouth as there is lot of uncertainty surrounding GST taxation rules. Sale of coffee fell over 20% to 74 tonne from 93 tonne sold at the beginning of the season in January. Under GST regime, green beans as well as the ground and roasted coffee may fall under one tax slab, which, according to the trade, is not justified. Industry speculations are rife on what tax rate would be applied on coffee under GST regime, as the government is yet to specify rates for food products.