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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. 


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  2. Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. GST Result 2021


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