Imported roasted arecanut being 'misclassified', could disrupt market: CAMPCO
Mangaluru (Karnataka) Jan 25 (PTI): Mangaluru-based multi-state cooperative, Central Arecanut and Cocoa Marketing and Processing Cooperative, expressed concern on Saturday over the challenges faced by domestic arecanut growers due to the import of roasted arecanut into India.
CAMPCO has sent a letter, dated January 25, to Union Minister for Commerce and Industry Piyush Goyal seeking his intervention immediately.
"Imported roasted arecanut is being classified under HSN code 20081920 as a value-added product, allegedly bypassing customs duties through misclassification," CAMPCO wrote in the letter.
This practice, CAMPCO asserted, disrupts market equilibrium, denying domestic growers fair prices for their produce despite supply shortages.
According to CAMPCO, the imports are facilitated through Advance Ruling Licences, which attract only 12 per cent GST.
The imported arecanut is being mixed with locally produced arecanut and sold, compromising product quality, it alleged.
"Such practices may lead to rejection by bulk buyers, affecting the reputation and demand for arecanut in both domestic and northern markets," added CAMPCO.
Consequently, prices of locally grown arecanut are likely to plummet, significantly impacting growers’ incomes, pointed out the organisation.
To address these issues, CAMPCO has appealed to the government to set a Minimum Import Price (MIP) for all arecanut imports, introduce a unified HSN code for all forms of arecanut to prevent misclassification and strengthen regulatory measures, and frame policies to ensure fair prices for domestic growers.
Additionally, CAMPCO has urged growers to avoid purchasing imported arecanut or mixing it with local produce to safeguard the interests of the farming community. The organisation remains committed to protecting the welfare of arecanut farmers.
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Govt not considering levying GST on UPI transactions above Rs 2,000: FinMin
New Delhi, Apr 18 (PTI): The government on Friday clarified that it is not mulling to levy GST on UPI transactions above Rs 2,000.
Clarifying on reports, which said that the government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs 2,000, the finance ministry said they are completely false, misleading, and without any basis.
"Currently, there is no such proposal before the government," the ministry said in a statement.
GST is levied on charges, such as the Merchant Discount Rate (MDR), relating to payments made using certain instruments.
Effective January 2020, the Central Board of Direct Taxes (CBDT) has removed the MDR on person-to-merchant (P2M) UPI transactions.
"Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions," the ministry said.
UPI transaction values have seen an exponential increase, growing from Rs 21.3 lakh crore in FY 2019-20 to Rs 260.56 lakh crore by March 2025.
The ministry also said the government remains committed to promoting digital payments via UPI.
To support and sustain the growth of UPI, an incentive scheme has been operational from FY2021-22. This scheme specifically targets low-value UPI (P2M) transactions, benefiting small merchants by alleviating transaction costs and promoting wider participation and innovation in digital payments.
In 2023-24, the government paid Rs 3,631 crore under the scheme, up from Rs 2,210 crore in 2022-23.
"The total incentive payouts under this scheme over the years reflect the government's sustained commitment to promoting UPI-based digital payments," the ministry noted.
