Indian Armed Forces Canteens have sounded red alarms due to the implementation of the Goods and Services Tax (GST) Regime, nearly 1,700 armed force canteens may soon have to shut their doors if they will not provide GST exemptions similar to the defence- run CSD’s. Through these canteens, lakhs of military forces and their families are running their houses, have been influenced by the new indirect tax regime.
One of the senior official which is involved in handling countrywide canteens called Central Police Canteens (CPCs) stock which includes groceries, kitchen and other miscellaneous were available in low quantity in such canteens as there is no clarification of transactions after the roll-out of the indirect tax regime.
“The stocks are in the red. The government has been petitioned time and again about the exemptions required to run these subsidised canteens for jawans, but there has been no final decision.”
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An official said, “A number of CPCs are now running on low stocks as no new procurement is happening. If no GST concession is allowed like that for defence canteens then the entire CPC system that runs on subsidised tax rates for troops will stop.”
One of the News-writer of PTI randomly visited Central Police Canteen (CPCs) which is based in the national capital and have seen that the availability of stock in the canteen was low. “There is no clarity after GST came into force”, said desk.
Central Police Armed Force Association wrote a letter to Prime Minister Narendra Modi, take some positive action in this matter kitchen budget, as lakhs of armed forces belonging to such as BSF, ITBP, CISF, CRPF and SSB and their families are facing problems.
Central Based Armed Forces such as NDRF, SPG, NIA, SPG and CBI bought daily household items from these canteens. All India Central Paramilitary Forces Ex-Servicemen Welfare Association communicated, “The imposition of GST on the CPC has put the members of these organisations in the crisis of kitchen budget.”
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Union Home Minister Rajnath Singh wrote a letter in this matter to Union Finace Minister Arun Jaitley and also attached to Prime Minister Narendra Modi. Singh wrote letter on 29th June has sought for exemptions on Central Police Canteens (CPCs), if exemptions not provided to such canteens then Central Armed Police Forces (CAPF) would be in trouble “financial hardships”. He also said that, GST exemptions on CPCs will enhance the ‘morale’ of armed forces who provide selfless service and fights for the nation
Singh said in his letter to Jaitley, “In the prevailing system of the CPC, the major relief to CAPF personnel and the families comes from the exemption of VAT provided by state governments.” By adding that, “GST exemptions to CAPFs and state police personnel through CPCs will provide great relief to the troops and their families and will mitigate their financial burdens.” Singh also said, “Hence, similar concessions may also be provided to the CPCs.”
The home minister stated that in his notice which mention that 50 percent concession is provided to armed forces people on supplies to the Canteen Stores Department (CSD) under the new indirect tax regime.
Central Armed Police Force (CAPF) association communicated through a letter to Jaitley and other senior government functionaries.”But, nothing has happened and as usual, the paramilitary society is compelled to swallow the bitterness of the step motherly attitude of the government.”
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Ranbir Singh, General Secretary of the Confederation of retired paramilitary welfare association stated to PTI that they have been seeking “exemption for the central police canteens from the GST and have submitted a number of memorandums to the authorities”. He further added, “We will hold a day-long hunger strike at the Rajghat in Delhi on August 9 demanding GST exemption for CPCs and other pending demands.”
The annual turnover of CPCs in the duration of 2016-17 was Rs 1,607 crore and was established in 2006. Currently, there are total 119 master canteens as well as 1,625 subsidiary canteens which are located in several states across India, where these armed forced are posted for the duty be it on the borders or the interiors of Naxal violence-hit states.
It seems Modi Govt. is not in the mood to start CPC. Maybe they only care for just Army.