Confusion from some smaller supermarket outlets, as the Government announces an election policy to remove GST on fresh and frozen produce.

It says it would save the average household $20 a month, starting next April.

Supie founder Sarah Balle says it'll add administration costs throughout the supply chain - which will reduce any savings.

"To not just the fruit and vegetable growers themselves, but everyone else through the supply chain, whether it's the markets, the processors- and of course, us as a supermarket."

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