JOIN USBiscuit industry seeks less GST rate
A day ahead of the GST Council meeting, which is likely to finalise model GST laws, the biscuit industry on Friday demanded biscuits be kept in the lowest slab.
It was an item of mass consumption, and higher taxation will adversely hit production, consumption and employment in the industry, it said.
Federation of Biscuit Manufacturers of India (FBMI) was of the view that lower GST rates on biscuits would enable their availability and access within the reach of aam aadmi, and that too at affordable prices.
In a representation sent on to the GST Council, FBMI, an affiliate association of PHD Chamber of Commerce emphasised biscuits be taxed within the lowest slab of GST for Foods .
It has been pointed out that almost 93% of the food basket comprises basic food. The government proposes to tax basic food at a lower rate under GST. Taxing the remaining 7% food items at higher rates, under GST will lead to increase in complexity, without substantial addition to the revenues. It will also not meet the goals of efficiency and equity.
FBMI also emphasised that multiple rates within a sector will lead to classification disputes and complex record-keeping and compliance system.
There is a predominance of the SMEs at the retail level and they will be ill-equipped to handle multiple rates.