GST :Glucose biscuits to become inflationary

New Delhi July 1: A new tax will be effective from today. The biscuits industry has some reservations over the current taxation.GST council has taxed biscuits at 18 %. Currently, there are different tax rates for different categories of biscuits.

Biscuits especially containing glucose (Low price High Nutritious LPHN) are taxed at 9-10 % if they are below RS 100 per kg.
and premium biscuits are taxed at higher rate.

Many industry associations have lobbied for 5 % GST (LPHN) and 12 % tax for premium biscuits.They have even said the government has to reconsider its proposal because bread is exempt from GST.

Industry experts say that they cannot increase the price of biscuits consumed by poor people because it would not be viable because of increase in costs of inputs and margins are very thin. Let's hope that GST will reduce the tax rates in the upcoming meeting.