GST effect: Kalaburagi tur dal mill owners pull out brands

HUBBALLI: In order to ensure that tur dal doesn't become dearer for customers and prevent them from having to bear the burden of the 5% tax that is applicable for packaged foodgrains under the goods and services tax (GST) regime, tur dal mill owners in Kalaburagi are withdrawing their brand and trademarks.
Nearly 10 mill owners in Kalaburagi have withdrawn their brands that were registered with the office of the controller general of patents, designs and trademarks of the Union ministry of commerce and industry.
Secretary of the Kalaburagi Dal Millers' Association Chandrashekhar Tallalli told TOI, "Withdrawing the brand will help us pass on the benefits of GST directly to customers. The 5% GST will only serve to increase the price of tur dal in the market."
Joint commissioner for commercial tax, Kalaburagi, Padmakar R Kulkarni said, "There is nothing wrong in withdrawing a brand. It is not a violation of GST norms. However, it's illegal to sell red gram under a brand without paying GST."
Tur dal is a widely cultivated crop in Kalaburagi - the district, in fact, accounts for 40% of red gram production in Karnataka and has earned the distinction of being the state's "tur dal bowl". It is home to nearly 250 tur dal mills, of which around 10 package the foodgrain and sell it under a registered brand. The state government imposed no specific tax on branded foodgrains.