Industry body AIFPA pushes for lower GST rate on packaged snacks and foods

 Food processors have asked for lower and equitable goods and service tax rates on packaged snacks such as potato chips and pickles ahead of the GST Council meeting next month.


The industry has reiterated its request through the All India Food Processors’ Association (AIFPA), which represents large firms such as Haldiram’s, PepsiCo, Marico, Britannia, ITC and Bikanervala.

In a letter to the finance ministry, the association has sought lower tax rates for what it calls “commonly used food products" such as packaged or branded pickles, chutneys, sauces and fruit drinks, along with branded snacks such as namkeen, bhujia, and potato and banana chips.


Currently, the GST on these is 12%, but processors want them to be put in the 5% slab.

The letter comes amid reports that the government is considering merging the GST rates of 12% and 18% into a single slab. This was reported by Mint on 19 February.


The companies fear that the creation of a new tax bracket could increase their tax burden and invariably their cost to consumers.

India has four primary GST rates of 5%, 12%, 18% and 28%, apart from a cess on luxury and demerit goods such as automobiles, tobacco and aerated drinks.


Source:https://www.livemint.com/industry/retail/industry-body-pushes-for-lower-gst-rate-on-packaged-snacks-foods-11614076477304.html

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