‘Exempt GST on Fish Meal’ demand AI Fishmeal & Oil Manufactures & Merchants Assn

‘Exempt GST on Fish Meal’ demand AI Fishmeal & Oil Manufactures & Merchants Assn

 ‘Exempt GST on Fish Meal’ demand All India Fishmeal & Oil Manufactures & Merchants Association – and “If we don’t pay GST, the Government has given us a warning that they will freeze our bank accounts, levy huge penalties, even close our business, charge extra interest etc, “say Association members.

Mangaluru : Addressing the media persons during a press meet held at Mangaluru Press Club, Pramod Madhwaraj, the Chairman of All India Fishmeal & Oil Manufactures & Merchants Association, Mangaluru said, ” Fish Meal was exempt/nil rated from the beginning under the repealed Central Excise and VAT laws, which the Industry believed has not been disturbed by the GST regime. The characteristics of Fish Meal for the purpose of taxation is explained in the Customs Tariff Act & this has been internationally accepted. This explanation has been consistently followed by the Industry for about four decades and the Department has also accepted this Industry practice. Finance minister on the Floor of the Rajya Sabha had promised to the Nation that the goods/services which are exempt in Central Excise and VAT regime will continue to be exempt during GST regime also”.

He further said, “Till date, as docile tax payers, the Industries have been declaring the monthly sales of Fishmeal Meal on which tax has not been collected, in their GST returns. None have concealed any information from the GST Department nor was there any intention to evade tax. GST Department accepted all these returns and they never raised any objection for non collection / payment of tax. They were well aware of all the issues related to Fishmeal till 31.12.2018 and till then nothing was advised to our members throughout India. Moreover, we have been promptly paying GST on Fish Oil without any dispute though the rate has been increased from 5% to 12%. Since Fish Meal was exempt the Industry never approached the Government for reduction in the rate as done by other industries like Cashew Industries, Desiccated Coconut Industries etc”.

“In spite of the notes to the GST council by the Karnataka State Government to exempt Fish Meal, a clarification was given on 31.12.2018 saying that Fish Meal is taxable @ 5% with effect from 01.07.2017. The issue relating to GST levy on Fishmeal as per Circular No.80/54/2018-GST dt.31.12.2018 issued by MF(DR)-TRU has been a subject of very serious consideration due to uniform practice of non-levy and time honoured exemption to Fishmeal under the Central Excise regime/VAT levy regimes across India. Fishmeal has always been exempted/nil rated, which the Industry believed had not been disturbed by the GST regime. However, on31.12.2018 the GOI (TRU) circular has been issued stating that Fishmeal would attract 5% of GST”added Madhwaraj.

Also speaking on the occasion, H K Khader, the President of the association said, ” Immediately there afterwards, the Industry as a whole under the banner of All India Fishmeal and Oil Manufacturers and Merchants Association approached the H’ble Prime Minister of India as well as the H’ble Finance Minister of the country and submitted the memorandum and pleaded that a time honoured trade practice which was understood and followed by the Industry throughout the Country be considered favorably and the effect of the aforesaid clarification circular dt. 31.12.2018 be nullified by issue of appropriate Explanation/Clarification/Amendment so that fishmeal is exempted from levy of GST be made effective retrospectively from 1.7.2017″.

Khader further said, “The MPs of coastal districts of Dakshina Kannada and Udupi- Chikkamagaluru, Sri. Nalin Kumar Kateel and Ms. Shobha Karandlaje were kind enough to lead our team for submission of our memorandum to bring the issues to the kind attention of the then H’ble Finance Minister who was convinced about the prevailing anomaly in the circular and promised a positive action. This issue was also brought to the notice of the H’ble Industry Minister. Since most of our members fall under the category of MSME sector he was kind enough to take a special effort to discuss the issue with the H’ble Finance Minister who assured him to remove the negative effect of the circular”.

Also speaking during the press meet, Anand Kunder, the Vice President of the Association said, “When the matter is engaging the attention of the highest decision making authority of India, GST Department has started harassing the Industry. They have started forcing us to pay tax from 01.07.2017 which was not collected by the Industries throughout the Country and have started attaching the bank accounts of the Industries. This has resulted in stoppage of the business transactions and the Industry is not in a position to pay for the Fish Purchases from the Fishermen which is their livelihood nor the salary to the Employees. On account of the draconian steps taken by the GST Department, the Industries will be forced to close down their business which will lead to disastrous consequences to Fishermen who live on hand to mouth basis and heavily depend on the Fishmeal Industry for their earnings”

“Our humble pleadings before the Government to take an immediate action to nullify the effect of the clarification circular dated 31-12-2018 so that lakhs and lakhs of Fishermen of the Country, Acquatic And Shrimp Feed Industries will not be put to untold hardship has gone without any effective steps. So, it has become inevitable for us to go on an indefinite strike with effect from tomorrow (1 August) till the GST Department stops coercive action against Fishmeal Industries, withdraws all the actions already initiated by them and the Government takes appropriate remedial steps to ameliorate grave difficulties and distress faced by the industry. All related industries/Persons of Fishmeal Industries like Boat Owners, Fishermen, Ice Plant, Aquatic and Shrimp Feed Industries are also humbly requested to join with us and support our cause” added Kunder.

Members of the Association-M K Balaraj and U M Abdul Razak were also present during the press meet