GST impact on Fishermen lives

Vishakapatnam, June 29: There are many concerns have been raised against GST across the country, which will be implemented on July 1st.

In the case of fishermen, who are already facing hardships due to various reasons, now expressing concern over the new tax regime GST, which is scheduled to come into force from July 1. The fisherman community is annoyed over imposing GST even on the purchase of dried fish.

The quantum of annual marine exports from the steel city is put at Rs 12,000 crore. And thousands of fishermen get their livelihood from fish trading and exports.

Currently, five percent tax is levied on nylon ropes used for fishing. But it'll be 18 percent under GST. There will be the tax on ropes and nets as well, eventually increasing the tax burden on prawns and fish.

The dried fish will also attract 5 per cent GST. The GST burden on the fishing industry in Visakhapatnam is estimated to be Rs 60 crore.

The fishermen are a worried lot now on account of GST in the fishing industry. As there is no cold storage facility at the harbor here, the fishermen have only two alternatives.

Either they should dispose of fish at whatever price they get and dry the fish to sell them as dried fish.

"Now, there is no benefit in drying fish as dried fish will attract tax. We will be forced to sell fresh fish at whatever price market dictates as there is no cold storage facility in the city. The GST burden will take a heavy toll on our earnings," a fisherman lamented.

The fishermen are seeking exemption from the GST. Earlier, they said, they used to pay seven per cent tax on one or two raw materials.

The current rate of GST would put an additional burden on them. So, they seek total exemption from the GST.