Industry body seeks tax parity on branded, non-branded snacks

Source: The Hitavada      Date: 06 Jan 2019 10:11:30


 

The Federation of Sweets & Namkeen Manufacturers on Friday demanded parity in Goods and Services Tax (GST) rates on branded and non-branded snacks. At present 12 percent GST is charged on branded snacks, while on non-branded products it is only 5 percent, and the federation wants it to be brought down to 5 percent.

“This anomaly has been increasing the complexities for traders and encouraging unhealthy competition. Some large big players have already started producing non-branded snacks today to take advantage of the tax benefit,” federation’s treasurer Firoz Naqvi told reporters. “So there should be equal GST on both branded and non-branded snacks," he said.