A Biscuit Or Two Less To Dunk After GST
By Team Legistify / 2017-07-12

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Expect a piece or two less the next time you buy a pack of India’s staple biscuit.

Parle Products, the maker of world’s largest selling biscuit Parle-G, will not increase prices to match a higher levy under the Goods and Services Tax. “A very practical solution is to knock a biscuit or two to take care of the price increase due to higher tax,” said Mayank Shah, category head at Parle Products.

Biscuits costing up to Rs 100 a kilo attracted a value-added tax of 12-14 percent earlier. The rate has gone up to 18 percent under the unified tax regime across categories. Which means, there is no distinction between low-cost and premium biscuits now.

It will be difficult to increase the price of Parle-G as the consumer is extremely price conscious, and retailers too will find it difficult to provide loose change to the consumer, Shah said. A 70-gram packet costs Rs 5 and the smallest pack sells for Rs 2.

Shah said GST will impact “a fair share of its volumes” of lower-priced biscuits, without giving numbers. Old packs are still in the market and the company will start rolling out the new ones in the next 30-45 days, he said.

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