Kerala: No GST On Items Sold By Kudumbashree Or Small Stores, Says Finance Minister KN Balagopal

Kerala Finance Minister KN Balagopal said in the Assembly that this decision of GST cut on a few entities may lead to issues with the Centre but the state government is not ready to compromise

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Amid widespread protests by traders and shopkeepers against the new GST hikes, the Kerala government on Tuesday decided to not levy GST on items sold by the government-run Kudumbashree and small-scale traders in quantities like 1 or 2 kgs.

Kerala Finance Minister KN Balagopal said in the Assembly on Tuesday that this decision of GST cut on a few entities may lead to issues with the Centre but the state government is not ready to compromise.

Kerala will not impose GST on items sold by Kudumbashree (a women SHG by the state govt) & small stores in 1-2kg packets or loose quantities, even if it leads to any issues with the Centre: Kerala Finance Minister KN Balagopal

— ANI (@ANI) July 20, 2022

He further said that the state has already written to the Centre about this. "Yesterday too, the CM wrote to them regarding these things. We don't intend to levy it on small-scale traders and small stores. There can be no argument on this," Balagopal said, as quoted by Mint.

Meanwhile, traders and shopkeepers have decided to stage a nationwide protest against the hike in GST on household items and foodgrains. Finance Ministry statement on Monday said that there will be a hike of 5 per cent on branded food including rice, wheat, pulses, etc and also on unbranded items sold in the quantity of 25 kgs or 25 litres.

Meanwhile, India's consumer inflation rate has gone up to 7.79 per cent, an eight-year high, in April and remained above 7 per cent in May and June.