Post GST: Merchants strike defiant stand

ALPPUZHA: Poultry merchants have rejected the government-fixed price of Rs 87 per kg and decided to declare their rate after a meeting here on Sunday. They decided to defy the finance minister T.M. Thomas Isaac's ultimatum to sell chicken at the lower price from Monday factoring in the zero tax under the GST regime replacing the 14.5 percent VAT.

The government hopes to bring down prices of food served in restaurants, but it is unlikely notwithstanding the minister's rhetorics. All Kerala Poultry Federation said they would never be able to sell at the government-fixed rate as suppliers in Tamil Nadu controls market. "The small-scale merchants are helpless as they hiked prices," its general secretary N. K. Nazeer told DC. "We had written to them about the pressure from the government but to no avail. So we cannot sell at this price when we buy at Rs 100 a kg. It's impossible." The coordination committee will fix an affordable price, he said, and convince people of the situation.

The Hotel and Restaurant Association, at a meeting with the minister on Saturday, offered to reduce rates by 8 percent at AC and 5 percent at non-AC restaurants before tax. Its general secretary G. Jayapal said it would bring down prices slightly. He said 5 per cent compound tax on hotels with an annual income of Rs 20 lakh to Rs 75 lakh would be a huge liability on hoteliers. "The government should present our concerns in the next GST Council meeting to get it removed. Otherwise, it will make an adverse impact on the sector," he told DC.