The GST has called up the biscuit industry to look through the higher possibilities emerging for taxation hike. As the Rs. 36,000-crore Indian biscuit industry demanded finish waiver of Good and Services Tax (GST) on Low Price-High Nutrition (LPHN) biscuits valued under a most extreme retail cost of ?100 a kg. The dread of the appearance of negative edges stage powers makers to diminish creation leaving demand unsatisfied. Glucose biscuits retailing at ?70 a kg today draw in net charges of ? 7.21 which is higher than the value expansion earned by the business (?7.01)
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Glucose biscuits offer buyers 72-kilo calories/per rupee (Kcal/re) contrasted with 55 by bread, 18 by potato chip and 29 by namkeen. Every one of the three appreciates concessional rate of expenses. A 70-gram pack of glucose biscuits which retails at ?5 offers 315 Kcal, which is around 16 percent of the day by day dietary proposal of the legislature.
A year ago, the scone business obtained agribusiness create of over Rs. 13,300 crore. Sugar costs have dramatically increased in the most recent decade and the present wheat flour and vegetable oil costs make net edges on LPHN biscuits decreased to only 3 per cent. There is a 62 percent weighted normal climb in info costs (maida, sugar and vegetable oil) in the course of the most recent decade, the bread makers have been notable increment their acknowledged pro rata. Meanwhile, the biscuit industry has its own issue, there are still many sectors which are comparative at the verge of risk and losing some of the earning for the sake of compact taxation economy structure.
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In this league, Mayank Shah, Vice-President, and spokesperson of the Biscuit Manufacturers’ Welfare Association Told that “LPHN biscuits are the only hygienically produced and affordable snack sold in small packs retailing at ?2-5. Consumed mainly by the low-income group, any increase in the price of LPHN biscuits causes a direct reduction in demand.”. “The government may tax premium biscuits as they deem fit. We are a highly compliant industry with last annual contribution to the exchequer at Rs. 3,075 crores. However, on behalf of over 600 manufacturers of LPHN biscuits retailed at up to MRP of ?100 a kg, I urge the GST Council to completely exempt the LPHN biscuits.” he added.
