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Impact Of GST On Bakery Industry

Tax! A confusing subject for common people!!
A complicating topic even for the government…
This is the reason why, the government have decided to unify it as a single entity.
Single taxation system
GST, abbreviated as Goods and service tax was initially introducedduring the budget session of 2007–08, which finally came into existence last month.
All forms of indirect taxes were abolished and a single taxation system was implemented.
People gave a mixed response since they were not aware of the fact it would impact on the economic development of our country.
Earlier, we pay Entertainment tax for watching a movie and VAT (Value added tax) on purchasing goods and services. Apart from all these taxes, there are many other diversifications such as excise duties, import duties, luxury tax, central sales tax, service tax, etc.
Bakery Industry post-GST
While bread has been exempted from GST, biscuits have faced a uniform 18 percent tax that would have a huge impact on the bakery industry. Pre-GST, the biscuits were priced at the range of 70-700INR per kg. But after GST, the condition has worsened.
If sellers try to sell biscuits below 100INR, it would result in levitation of tax percentage. Though it might be beneficial to the end users, the service providers, here I mean the bakers and suppliers would get affected at a larger rate.
18% GST
All categories of biscuits, flavored refined sugar, pasta, cornflakes, pastries and cakes, come under the 18% GST.
The confusion
Though it is clear that the bread is not taxable, it is a vain for the bakers that the same bread is 12% taxable when it takes another form, such as Vada-Pav or sandwich. Here starts the confusion. Even the common men would be confused on the taxable and non-taxable goods.

Only if there is an awareness created, the public would discover the positivity. And also, the bakers must be given proper knowledge on what exactly is GST. 

Whole Grain Bread, A Better Alternative To Classic White Bread

Atta bread, also known as whole grain bread is now trending amongst health-conscious Indians. This has replaced white or brown bread on a large scale.
Why wheat as an alternative?
The flavor of wheat is loved by Indians, since it has been the historic staple food for Indians. The addition of wheat to bread gives it a lot of fiber and also makes you feel satisfying. Also, one could lower the risks of getting heart attack by consuming whole wheat bread instead of normal classic white or brown bread.
Wheat bread in India
When you have a deep look into the health consciousness and awareness level of Indians, it is a pity to know that we Indians are addicted more towards white bread for its taste and forget about the goodness of Atta bread.
If and only the doctors advise or if they really are diet and health conscious they choose wheat bread over white bread.
Dietary fibre percentage
In comparison with maida, atta is definitely a better choice since it has more dietary fibres compared to atta. Also, it normalizes bowel movements, lowers blood sugar and cholesterol levels.
Exploring deep inside
Whole wheat flour includes three layers of grain, such as bran, germ and endosperm. Whereas, refined flour consists only the endosperm.
Also, whole wheat flour has more fibre and phytochemicals that reducesrisk of cancer, heart disease, diabetes.
Other things to note
One must note that wheat might be sensitive on certain types of skin and it may lead to allergy or sometimes an auto immune disorder (Celiac disease). So, it is always better to take a test before consuming wheat and wheat related products that are rich in gluten.

Toxic chemicals found in normal bread
After a research, it has been found out that, chemicals such as potassium bromate and potassium iodate, that is used to treat baking flour could lead to cancer. Almost 40 countries have banned the usage of these harmful chemicals in bread.
Pathetically, this is not the case in our country. So, we must be choosy about the food we eat. Always, it is better to choose healthy one over delicious one.

Britannia To Venture Offshore To Increase Market Share

India’s most favorite Britannia works on devising a magical business tactic to capture the hearts of offshore residents by setting its foot into several countries.
Our love for Britannia is indescribable. We all would have, at any point of time in our life, developed an intense crush with each and every product of Britannia starting from ‘Little hearts’ till smiley ‘Milk Bikis’.
Britannia aims to fulfill the requirements of its audience more than they actually expect. Basically it wants to project itself as a food industry rather posing as a bakery industry with a wide range of cheese spread, cubes, milk, skimmed milk, etc.
Consolidating the annual report, it is believed that Britannia acts as a major growth driver in dairy by selling value-added products like cheese, dahi and milk based drinks.
Target nations
Britannia would primarily target the countries that are at the stage of development and is expected that it would contribute around 14-15 per cent of its turnover in the next 4-5 years.
1000 crore plant in Maharashtra
Also the company is planning to expand its portfolio in India by diversifying the range of products and increasing the product price likely. A huge plant will be set up in Maharashtra that would cut off the production cost of products.
The Nepal invasion
Recently it has signed a 10 year technical collaboration with the famous Nebico Pvt. Ltd., a Nepal company and has decided to intrude the taste buds of Nepalese. The investment is worth 55 crores and is planned to increase even more in the upcoming years.
Overseas ventures
Britannia entered the Lankan market in the year 2008, after launching a range of biscuits under the brand name Britannia Lanka. It has finally decided to put an end to its 'unviable' Sri Lankan operations due to its financial loss.

After an adverse economic impact, the West Asia business started to face a severe downfall in UAE, where Britannia has quite sizeable presence.It  has  an unit in Oman  catering   Gulf countries.
Even after facing all these challenges, Britannia came back with a bang with its marketing strategy and made significant brand investments. This thereby strengthened its competitive position in the global arena.

Source: Various  news magazine 

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