Traders’ association urges Jaitley to keep sugar out of GST ambit.

Bombay Sugar Merchants Association has urged Finance Minister Arun Jaitley to keep sugar out of the ambit of the GST. Bringing sugar under GST will increase tax-related formalities for traders, a majority of whom have never gone through the procedures and will take time to understand and practically implement the pre and post sales systems. At present, the only tax that the commodity attracts is excise duty of 71 rupees per 100 kg, which is charged at the mill gate, it said. While the excise duty works out to around 2% on ex-mill prices of sugar, the proposed GST rate of 5% would raise the retail price of the commodity and, in turn, affect households. Under the present consumption pattern in the country, about 65% of the demand for the sweetener is from the industry, while only 35% is from retail consumers.