The statement which the GST Council has made about tax system on branded food has made many food traders confused. The council has not changed the tax rate on food. The rate remains the same as it has been in the past. Unbranded stuff attracts 0% tax and branded food attracts 5% tax.

Some have predicted consumer price increase. The large players in the market had assured that GST could be absorbed and the price of the food will remain the same.

The secretary of Ahilya Chamber of Commerce said that traders of the nation have become confused. Due to this on behalf of the chamber, the traders have been asked to charge 5% GST on food.

The clarifying price statement came after the council found that brands are getting their products deregistered and then selling the same products under the company’s name. These companies have taken action to skip tax payment.

The event has been creating differences between the traders. Arun Jaitley has said this in 21st GST Council meeting on Saturday. In case an item has got trademark as on May 2017, the item will fall under GST system.

However, the traders are saying that the situation has become confusing. Now, the traders think that all items regardless of registration will be charged GST. This is happening because no item gets sold without the name of the company. According to food industry regulation, the goods get sold with some mark or name. The prices of all items will rise.

A trader said that items whether registered or not will attract the usual 5% of the tax. That part is clear though the confusion remained. No one knows as of now whether items bearing the names of the manufacturers will also attract tax or not.

To balance the situation, the traders have stopped selling unregistered products. They are also billing everything 5%. The All India Traders Association has arranged a meeting to ask for a reduction of taxes for daily used items by the common people. The sellers of branded products say that the development is positive for them.

The taxpayers need to pay tax for any brand name. The reformed tax system has given the participants vast playing field in the market.