MSMEs condemn move to slap GST on fish meal, oil with retrospective effect; say govt not keeping its promise

Mangaluru, Aug 1 (KNN) Opposing the Central government’s move to slap GST on fish meal with effect from July 1, 2017, the All India Fishmeal and Oil Manufacturers and Merchants Association, here will stage an indefinite strike from today, said Pramod Madhwaraj, former Minister and honorary chairman of the association.

“If we don’t pay GST, the Government has given us a warning that they will freeze our bank accounts, levy huge penalties, even close our business, charge extra interest," said association members.

Addressing the reporters at Patrika Bhavan, Madhwaraj said that the former finance minister had earlier promised that the goods and services which were exempted in Central Excise and VAT regime, would also be exempted during GST regime.

"But 5% GST was imposed on fish oil. The GST was eventually hiked from 5 % to 12%. However, the fish meal and oil manufacturers did not oppose the move and paid the taxes promptly," he added.

He cried that the shock came to fish meal and oil manufacturers when the Central government in its clarification, issued on December 31, 2018, declared that the fish meal will be taxable at 5% with effect from July 1, 2017. "

Fishmeal has always been exempted and the Industry had not been disturbed by the GST regime. However, the GOI  circular which has been issued states  that Fishmeal would attract 5% of GST, said Madhwaraj.

He said that the Union Government has decided to levy the tax even after the Karanataka State government sent notes to the GST Council to exempt fishmeal from GST.

Madhwaraj said that it is not correct to ask the industries to pay tax with retrospective effect as they have not collected that tax from consumers from July 1, 2017. Now, paying tax with retrospective effect will be a burden on the industries.

"The GST authorities are forcing the industries to pay tax with retrospective effec" he added.  Such a measure has resulted in the stoppage of business transactions.

He said “Of the total 56 fish meal and oil industries in India, 34 of them are located in Karnataka. We are contributing to foreign export and many units come under MSME sector.”

In this regard, memorandum was submitted by the fish meal and oil manufactures to the prime minister and finance minister to reconsider the decision.