The Indian Sellers Collective and its member organizations emphasize the need for a fair and simplified GST framework to support small retailers
New Delhi: The Indian Sellers Collective, an umbrella body of trade associations and sellers nationwide, has strongly urged the Finance Minister and the GST Council to reject the Group of Ministers’ (GoM) recommendations on GST Rate Rationalization.
The proposal introduces a new fifth GST slab of 35% and a pricing-based rate structure, which the Collective claims would fundamentally alter India’s GST framework.
“These recommendations violate Prime Minister Modi’s promise of GST being a ‘good and simple tax.’ The proposed framework would be neither good nor simple. Instead, it would decimate retail profit margins, create compliance challenges, and fuel a parallel economy,” said Abhay Raj Mishra, Member & National Coordinator of the Indian Sellers Collective.
The Indian Sellers Collective has raised significant concerns about the proposed GST overhaul, warning that graded GST rates would make goods with incremental features costlier, restricting middle-income consumers’ ability to upgrade. A 35% tax on demerit goods like tobacco and aerated beverages could exponentially expand illicit markets, undermining formal retail businesses and endangering consumer safety.
Small and mid-sized retailers would face severe operational and legal challenges due to the complexity of a pricing-based rate system, while frequent reclassification of goods into higher tax slabs could breed corruption in tax management. Overall, the Collective believes that an overcomplicated GST structure, rising costs, and frequent disruptions would hurt small retailers, erode investor sentiment, and destabilize the retail ecosystem.
Mr. Dhairyashil Patil, National President of the All India Consumer Products Distributors Federation (AICPDF), highlighted that the retail community is already struggling under immense pressure from e-commerce and quick-commerce. He stated “We make a heartfelt appeal to the Honorable Prime Minister, Finance Minister, and GST Council to reject these recommendations, which are contrary to the principles of rationalization and simplification. Instead, we urge the Government to simplify GST compliance, reduce rates where feasible, and ensure stability in the business environment.”
The Indian Sellers Collective is a leading coalition of trade associations representing small sellers across India. Members include the Public Response Against Helplessness and Action for Redressal (PRAHAR), the Federation of All India Distributors Association (FAIDA), the ll India Consumer Products Distribution Federation (AICPDF), and others. The collective advocates for fair trade practices and policies to protect and empower Indian sellers.
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