The Indian Biscuit Manufacturers’ Association has called for a reduction in the GST rate on biscuits to 12% from the current 18%, arguing that biscuits are mass consumption products that are mostly consumed by the poor.
“Biscuit manufacturers, especially in the SME sector, are hard hit because of unjustified imposition of Goods & Services Tax (GST) at a very high rate of 18%,” the IBMA said in a release. “The growth in the industry has started to stagnate since the imposition of the 18% GST and there is urgent need to bring down GST rate to 12%.”
“Biscuits are a common product of consumption from a rickshaw puller to a low-wage labourer in search of hygiene, energy, nutrition at a low cost,” B.P. Agarwal, president of IBMA said at a press conference.
“Similar food products are subject to lower GST rates, such as sweets, processed dry fruits, tea, juice, namkeen, jam, noodles, pasta, tomato ketchup while GST at 18% is imposed on biscuits,” Mr. Agarwal added.
The Goods and Services Tax Council will next meet on January 18.
