Khari Baoli traders hail zero GST on foodgrain

Grain traders in Delhi’s oldest cereal and spice market, Khari Baoli, have welcomed the government’s move to exempt cereals, foodgrain, milk and jaggery from the Goods and Service Tax (GST)

Though many traders were not aware of the new rule, but association members and those keeping a close eye in the recent development said that the market will get a boost as their exports would increase.

Under the proposed tax reforms, foodgrains and jaggery have been completely exempted from the levy, while products such as mithai, edible oil, sugar, tea, coffee and coal will attract 5% GST. Similarly, hair oil, toothpaste and soaps are in the 18% bracket.

“Earlier, if we sold items to traders of neighbouring states like Haryana, Punjab and Rajasthan, the buyers had to pay 5% tax to their state government. Since, GST means uniform tax rules, traders in the neighbouring states will be free to purchase from Delhi’s market,” said Ratan Navetia, general secretary of Khari Baoli grain market association, which has over 2,000 shops.

“Earlier, they had to see the profit margin after paying tax to their own states only then they came to Delhi,” he said.

The traders said that the proposed tax reform will also help them avoid bureaucratic hassles and raid threats from tax officials.

“States like Uttar Pradesh, Haryana and Rajasthan asks for more papers, while in Delhi and Himachal Pradesh one does not need so many legal documents for sale and purchase. Once the proposed reform will kick-off, the traders will be saved from these bureaucratic hassles,” said, Mohan Sahu, who owns a wholesale wheat shop in the area.