Hyderabad Traders Appeal for GST Relief in Upcoming Union Budget
Small business owners and traders in Hyderabad have made a strong appeal to the Central government, seeking significant relief in Goods and Services Tax (GST) and assistance with rising procurement costs in the forthcoming Union Budget for the fiscal year 2026-27. This collective plea comes against the backdrop of shrinking profit margins and a noticeable slowdown in consumer demand across various market segments.
Growing Challenges for Seasonal Vendors and Retailers
Seasonal goods vendors and small-scale retailers in the city have highlighted how indirect taxes on everyday products have created substantial operational hurdles. These traders emphasized that maintaining affordable prices for customers while sustaining their businesses has become increasingly difficult under the current tax regime. The situation has been further exacerbated by frequent price hikes in essential commodities, which have reduced their capacity to stock goods and negatively impacted daily sales volumes.
Specific Call for GST Reduction on Essential Items
The trading community has specifically appealed to the government to consider reducing or completely waiving GST on basic food items and dairy products. This includes everyday necessities such as milk, sugar, and other daily-use commodities that form the core of household consumption. Traders argue that such measures would alleviate financial pressure on both retailers and consumers, creating a more favorable market environment.
Ground-Level Impact of Current GST Structure
Krishna Chaitanya, a Hyderabad-based retailer specializing in electronics and essential household items, has previously raised similar concerns about the existing GST framework. He explained that the current tax burden on essential goods is significantly affecting consumer purchasing power and dampening market sentiment at the grassroots level.
"High GST rates have substantially reduced consumers' ability to spend, leading to a noticeable decline in overall demand," Chaitanya stated. "This fall in consumption has directly impacted retail businesses, particularly affecting small traders who depend on consistent daily sales for their livelihood."
While acknowledging the corrective measures introduced by the Centre regarding GST implementation, Chaitanya noted that ground conditions remain challenging for small retailers. He attributed sluggish market activity primarily to high taxes on essential household and electronic goods, which are forcing customers to cut back on their purchases.
Proposed Solution for Economic Revival
Chaitanya has urged the government to consider reducing GST on essential household and electronic items to 12 percent. He believes such a strategic move could potentially boost consumption patterns, revive sales figures, and provide much-needed relief to both small traders and middle-class households struggling with inflationary pressures.
Budget Session Schedule Confirmed
Meanwhile, Union Parliamentary Affairs Minister Kiran Rijiju convened an all-party meeting of floor leaders from both houses of Parliament on Tuesday, ahead of the upcoming Budget session. The parliamentary schedule has been finalized, with the Budget session commencing on January 28 and continuing until April 2, featuring a break in between proceedings.
The session will be conducted in two distinct phases:
- The first phase will run from January 28 to February 13
- The second phase will extend from March 9 to April 2
This schedule comprises a total of 30 parliamentary sittings. The Union Budget for the fiscal year 2026-27 is scheduled to be presented on February 1, marking a crucial moment for economic policy announcements that could address the concerns raised by Hyderabad's trading community.
