Team siliconindia

• Chambers seeks GST relief for MSMEs making fruit pulp beverages.
• Recommends ITC benefits to ease tax burden in hospitality sector.
• Calls for fair treatment on cess for auto dealers post-GST 2.0 rollout.

The A.P. Chambers of Commerce and Industry Federation has put forward constructive suggestions to the GST Council, aiming to further strengthen India’s business environment under the new GST 2.0 regime. In a representation to Finance Minister Nirmala Sitharaman, Federation President P. Bhaskara Rao highlighted key areas where policy fine-tuning can boost industry confidence and economic momentum.

A major recommendation was to reduce GST on fruit pulp-based beverages from the current 40% (including cess) to 18%, aligning it with other processed food items. Rao said this move would greatly benefit MSMEs involved in beverage manufacturing, especially in agriculturally rich states like Andhra Pradesh, Tamil Nadu, and Maharashtra.

The Chambers also emphasized the need to support the hospitality sector, which has seen positive steps like the reduced GST rate on mid-range hotel rooms. However, the withdrawal of Input Tax Credit (ITC) has increased costs. The Chambers proposed either restoring ITC or implementing a refund mechanism, to ensure smoother tax flow and financial ease for tourism operators and hoteliers.

In the automobile sector, Rao pointed out the issue of accumulated cess on pre-GST 2.0 inventory. He urged the Council to permit either refund or adjustment, helping dealers avoid losses and maintain competitive pricing.

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Additionally, the Chambers suggested reducing GST on industry exhibitions and memberships, and streamlining procedural aspects to make compliance easier for businesses.

These proposals reflect a proactive industry outlook, seeking collaboration with the government to ensure that reforms benefit businesses across sectors.