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Govt hints GST on packaged food awaiting trademark, MSMEs say much needed

 New Delhi, Aug 10 (KNN) Responding to the complaints that big companies are misusing the exemption under GST given to small scale industries, reports have surfaced that the government may consider 5 per cent GST on packaged foods that are yet to receive trademarks confirmation.

Talking to KNN, Prem Chand Goyal, Finance Secretary of Punjab Rice Millers Association explained that the industries particularly the Micro, Small and Medium Enterprises (MSMEs) that didn’t have logos and trademarks demanded exemption.

Following which many big companies stepped in and are misusing the exemption that is exclusively meant for the MSMEs.

To avoid the tax net, companies that are already registered are seeking deregistering to avail the exemption; also there are companies who are enjoying zero per cent tax just because their logo and trademark is yet to get approval.

This is resulting in an unfair playfield for the MSMEs, while the zero GST was given to ensure that the small scale doesn’t suffer, it is happening otherwise.

Goyal informed that there are talks of requesting the government to consider the definition of brand used under excise laws for Small Scale industry and not go by the trademarks laws.

Also the government must go ahead with a 5 per cent tax on the brands that have already applied for the trademark, he added. (KNN/ DA)