GST blow: Biscuits to become heavier on the pocket

Bringing homogeneity in the tax rates in biscuits industry, the GST council slapped a uniform 18 per cent tax on both, below 100 per kg biscuits and above 100 per kg biscuits.    
 
Earlier, the biscuit industry had a variable tax structure, with the below 100 per kg biscuits subject to 9-10 per tax, whereas, premium biscuits or above 100 per kg biscuits subject to 16-17 per cent tax rate.      
 
Below 100 per kg biscuits majorly comprise of the glucose and low-priced biscuits, with about 700 manufacturing units in India producing the same. The glucose and low-cost biscuit segment constitute 23 per cent of the total Rs 26,000 crore domestic biscuit industry.  
 
Thus brands such as Parle producing world famous low-cost biscuit Parle-G, and other low-cost biscuit manufacturers are likely to bear the blow of the hiked tax rates. While, Britannia, ITC and alike brands producing higher-priced premium biscuits and cookies will escape any additional tax burden.