Home News

GST – A tough code to crack for the sweet makers

SHARE

Chennai – While the entire nation is trying to decode the complex GST codes, sweet makers might be the most interested ones. The mithai makers of India are all concerned about the newly implemented tax which threatens to change the sweets and the features of the sweets.

The plain barfi which is considered a plain sweet might be taxed 5%. However, the moment the barfi becomes a chocolate barfi, the price may go high as the tax would go high. Here the tax could go as high as 28%. Plain barfis if adorned with nuts or cardamom could fall under 12% tax.

In case the dishes get more complex, the tax would get high as 28%. Wherever the combination fruit jelly and other items like ice cream come to the picture, the tax threatens to go greater than 28%.

The diabetic sweets have not been able to avoid the consequences either. The artificial sweetening agents like sorbitol would be charged 18% tax.

Sweet makers like KC Das and other brands are trying to play the game safe. They are making only plain mithai’s and trying to find out whether they have to pay 28% tax for the chocolate sweets. Even a simple sweet like chikki can confuse the makers as the sweet is created from nuts and jaggery.

According to Chapter 2008 of GST Rate Schedule for Goods, the nuts like cashew or groundnuts would be charged 18%. The implementation of GST has made the sellers of sweet go creative with their sweets. They are trying to opt for lower tax rate through different sweets with different makes.

SHARE
A pure vegetarian, who believes in reincarnation & law of karma and follows the philosophy of “Live and let others Live” because all living beings have equal right on the resources of this planet. Being from a finance background, he loves to write about business aspects of the trends.

Leave a Reply