Biggest biscuit-manufacturing company of India denies media-reports about job-cut of 10000 persons, but does not rule out because of highly irrational GST tariffs affecting sale of its confectionary items where biscuits attract 18-percent GST while rusks are in 5-percent GST slab.
Presently GST-tariffs are highly irrational, confusing and improper where similar items are in different GST-brackets like 5, 12 and 18 percent. GST on harmful sweets is just 5-percent while namkeens prepared and sold by local confectioners attract 12-percent. Best is to remove all confusion by putting sweets, namkeens, biscuits, rusks and all such food-items in a common GST-slab of 12-percent for single rate-structure for products made by confectioners.
GST has become additional product where most local confectioners including renowned ones in unorganised sectors have taken GST as extra profit for unbranded sweets and namkeens, where mostly they do not give invoices for their items though charging from customers. They steer strangely the customers who demand cash-memos for their purchases. single-rate structure for their products. There should be strict warning displayed prominently at shops of every confectioner covered by GST which should also guide customers to insist on cash-memos. Confectioners should be warned of cancelling of licenses in case they do not resort to practice of compulsorily issuing cash-memos and invoices without even being asked by customers.
Best is to merge GST tariffs of 5, 12 and 18 in a common tariff of 12-percent including on service-sector to remove irrationality and confusion. Presently 18-percent GST in service-sector is highly excessive.
MADHU AGRAWAL