Urgent Need to Lower GST Rate on Biscuit To 12%: IBMA


Jammu, Mar 7: 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 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%. Biscuit is a mass consumption food product, hygienically processed and consumers of biscuit belong predominantly to the poorer segment but biscuits have been mistakenly understood to be a premium product, preferred for the consumption by the affluent society, whereas biscuit has been placed in the higher tax slab denying level playing field for biscuits vis-à-vis similar products.
"Biscuits are common product of consumption from a rickshaw puller to a low-wage laborer in search of hygiene, energy, nutrition at a low cost. Similar food products are subject to LOWER GST RATES, such asSweets (5%), Processed Dry fruits (5%), Tea(5%), Juice, Namkeen, Jam/Jelly, Noodles, Pasta, Tomato Ketch-up (all 12%) while GST at 18% is imposed on Biscuit. We urge the government to review their decision of imposing 18 % GST on Biscuit industry. There is urgent need to bring down the GST rate to 12% to avoid stagnation in growth of the industry", said Mr. B P Agarwal, President, Indian Biscuits Manufacturers' Asso-ciation (IBMA).
Mr. Anoop Bector, MD of Cremica Biscuits added that "Biscuit is made of agricultural products like wheat, vegetable oil, sugar and milk and higher production of biscuit would benefit larger number of farmers. Biscuit is highly Labour intensive, and stagnation in growth in production would adversely affect the industry which is estimated to provide employment to about 7.5 lakh workforces directly and more than 30 lakh persons indirectly in marketing, retail network, transport etc".
"Biscuit industry is subjected to escalation in cost of inputs/ingredients due to higher cost of transportation, fuel, packaging, wages etc."added Mr. Pankaj Agarwal, CEO of Bonn Biscuits.
IBMA has already submitted detailed representation to the Hon'ble Prime Minister Mr. Narendra Modi, Union Finance Minister Mr. Arun Jaitley, Union Minister for Food Processing Industries Ms Harsimran Kaur Badal and also to the Finance Ministers of all states, who are members of the GST Council.

Share This Story

Comment On This Story


Photo Gallery

BSE Sensex
NSE Nifty