New Delhi, Jan 18 (KNN) The Biscuit Manufacturers, many of whom are micro, small and medium enterprises (MSMEs), have demanded to bring down the GST rate to 12 per cent from present 18 per cent.

“There is urgent need to bring down the GST rate to 12% to avoid stagnation in growth of the industry”, said BP Agarwal, President, Indian Biscuits Manufacturers’ Association (IBMA) in a statement.

He said the biscuit manufacturers, especially the MSMEs, have been hard hit because of imposition of 18 percent Goods & Services Tax.

“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 as Sweets (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.

Writing to KNN, Dr Sushma Joya Pandit, Chairperson, ICWE, said, “Biscuits is an item widely being used by poor people in villages and is being consumed on a large scale to satisfy the hunger of rural children. Children in villages has no other option to take it with tea.”

“Imposition of Goods and Service Tax for an item being consumed by poor rural children should by 10% and not 18%. Cakes and Pastries are being used by children of Rich families 18% GST should be charged on such items which the poor could not afford. Hence hon'ble Finance Minister is kindly requested either to abolish tax on Biscuits in Rural areas or charged 10% GST,” she added. (KNN Bureau)