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Kerala Chief Minister Pinarayi Vijayan had clarified, earlier this week, that the decision to increase GST on packaged food items from retail and small-scale traders, including Kudumbasree, will not be implemented in the State.
On Wednesday, Finance minister Balagopal said that small traders should not use removal of GST exemptions to jack up prices of essential commodities.
The CM said that the State has sent a letter to the Prime Minister seeking withdrawal of the hike in GST for packed items.
CPM's V Sivadasan and A A Rahim and CPI's Santhosh Kumar are among those who were suspended.
Days after Sitharaman mentioned that Oppn-ruled states had given their nod for imposing 5% GST on certain unbranded packaged food items, Balagopal said it was only a 'technical claim'.
As per the new tax norm, all packaged, labelled food items including cereal, flour and pulses weighing below 25 kilogram will attract a 5 per cent GST.
Finance Minister K N Balagopal said the state government has already written to the Centre regarding its stand.
Pre-packaged and labelled food items, including cereal like rice, pulses and flour, would attract 5 per cent GST if the package weight is below 25 kilogram.
From July 18, customers will have to pay 5 per cent GST on pre-packed, labelled food items like atta, paneer and curd, besides hospital rooms with rent above Rs 5,000, in accordance with a GST Council decision.
The hike in prices comes in the wake of a 5% GST on essential items imposed by the Centre.
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