Peanut candy to attract only 5% GST, not 18%

MADURAI: “Kadalai mittai”, the traditional peanut candy, will be taxed under the 5% slab only in goods and services tax (GST) and not 18% as was being construed.

Commissioner of Central Excise, Service Tax and Customs R Saravana Kumar clarified on Sunday that it would be taxed under the 5% slab, putting an end to the controversy of it being charged more than pizza.

The clarification came at the public interaction meeting on GST here presided over by Union minister of commerce and industry Nirmala Sitharaman.

The Madurai District Tiny and Small Scale Industries Association (Maditssia) and Industrial Estate Association on Sunday said that they were holding these interaction meetings on GST to make the people understand it better.

The GST council is not a central government council, but a council that has come with constitutional backup and consists of finance ministers of the 29 states and seven Union territories and the Union finance minister as members.

“No decision is made without these representatives holding consultations with the various organisations in their respective states,” Sitaraman said. “I think it was done in Tamil Nadu too,” she said.

When a representation was made by idly dough manufacturers’ association for cutting GST, the minister said idli dough production was something unique to Tamil Nadu. She would take up its tax exemption with the council as in the case of other perishable food products like eggs, milk and vegetables.

She said the representation made for gunny bags, concrete hollow blocks and used and virgin plastics among other things would be considered. On pizza, the Union minister said that 5% GST was for the readymade pizza dough and that a ready-to-eat pizza attracted 18% GST.

GST was a consumption-based tax and there were apprehensions that manufacturing states like Gujarat, Punjab, Tamil Nadu and Haryana would stand to lose due to lesser consumption in their states, but these states would be compensated, she said.

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