Biscuit makers want a cut in GST rate to 12%


Biscuits eaten mostly by poor: IBMA

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.

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Printable version | Jan 19, 2020 4:12:24 AM |

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