Guntur's chilli sales hit by GST

Guntur: Chilli purchases halted in the Asia’s biggest chilli yard at Guntur. The chilli growers who preserved the chilli stocks in cold storages planned to sell the produce but the absence of the transactions disappointed them. The chilli traders claimed that the waybills are yet to be issued under the new GST system which is curbing them to shift the chillies and asking the chilli growers not to bring produce for selling purposes.

Earlier an average of 15,000-20,000 chilli bags used to come to yard for sales but the quantity has dropped to hundreds in the past few days. The chilli growers are seeking the officials to resolve the GST issue enabling them to sell their produce. 

The traders G. Subba Rao and others said that earlier two per cent tax was applicable to sell chillies in other states but it had increased to 5 per cent tax under GST. They mentioned that earlier no tax was imposed for exporting chillies to other countries but under GST they have to pay 5 per cent tax.

They stated there is no tax to commission agents and commission traders but they were identified as service providers and 18 percent has been imposed under GST. They lamented that majority chilli traders don’t have knowledge about the GST system and they did not get any GST software till date. 

They said that waybills are must to shift the chilli stocks to other districts and states and to godowns for stocking purposes but they don’t have waybills hence stopped chilli transactions. 

Chilli growers N Srinivasa Rao and others said that the government put ban on purchase of stocked chillies in cold storages due to purchase of fresh yield under price assistance scheme for the past two months. They said that the scheme was ended on June 30 hence they planned to sell the stocked chillies but GST became a big hurdle. They sought the government to resolve the waybills issue enabling them to sell chillies and to restart cultivation activities. 

Commercial taxes department joint commissioner Raja Babu said that purchases and exports can be done through invoice bills. 

He said that waybills would be provided in three-four days and asked traders to contact help desks to clear their doubts.