The GST on dry fruits should be at 5 per cent and not at the proposed 12 per cent, as higher tax will lead to price rise and encourage illegal trade across LoC, industry body INC said today.
International Nuts and Dry Fruit Council (INC) said that the industry currently pays 5 per cent VAT in most states and therefore, goods and services tax (GST), should be at the same level.
Already, dry fruits attract very high customs duty of up to 30 per cent.
"Any increase in GST will be at the cost of national interest," INC Ambassador for India Raju Bhatia told PTI.
Higher GST will not only hit the genuine trade, but it will also lead to a loss of Rs 1,000 crore customs duty to the exchequer, Bhatia claimed.
The National Investigation Agency is also aware of these illegal trades and the issue has been flagged with Finance Minister Arun Jaitley recently, he added.
Almond, pistachio and walnut are main dry fruits exported from J&K via LoC.
"These dry fruits are not grown in Kashmir. They are imported from Iran and the US and misrepresented as Kashmir commodities and sold via LoC. In fact, Kashmir's production of these dry fruits is very low and consumed locally," he shared.
India's dry fruits market is about 4,25,000 tonnes, of which 80 per cent is almonds. Most of the dry fruits are imported.
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