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GST - Coffee beans processing units in trouble; seek exemption

Published: Jan 19, 2018

By TIOL News Service

BANGALORE, JAN 19, 2018: TAX exemption is generally welcome by taxpayers but certainly not in the case of coffee growers. In its latest Press Release the Coffee Growers' Association has protested against exemption granted to green coffee i.e. coffee beans - not roasted. It has demanded that all coffee products should be treated at par.

If not treated at par, the Association notes that Coffee beans are exported after processing but this amendment has put coffee beans processing units at danger as the roasting process sector is now coming under threat. This has also brought a lot of people under the threat of losing their employment as the growers and producers are now more inclined to export coffee beans without roasting.

The Coffee Grower’s Association of Karnataka has sought intervention of policymakers and has submitted a memorandum to the office of the Finance Minister today. They have been told that the GST Council will look into this issue as it might affect the sector unevenly and might reconsider, if found appropriate, its decision of repealing exemption or brought other sectors in the same tax slab, which it has earlier provided. This would help the coffee-processing sector to retain its ground, says its Secretary, Mr M Jagannath.