Sisodia seeks removal of discrepancy in tax rates of 'papad' and 'kachri' at GST Council meeting

New Delhi, Feb 18 (IANS) At the GST Council meeting held on Saturday, the Deputy Chief Minister of Delhi, Manish Sisodia, sought removal of the discrepancy in deciding taxes for 'papad' and 'kachri'. He also wrote to Union Finance Minister Nirmala Sitharaman in this regard.

Sisodia said that because of a clarification circular issued by the Finance Ministry on January 13, 18 per cent GST is now being levied on 'papad' as well as 'papad-like' products commonly known as 'kachri' or 'kachri papad'.

"Papad and kachri belong to the same food category. In such a scenario, Nil GST on papad and 18 per cent GST on kachri is unjustified. Kachri papad is not a premium product and if the discrepancy is not removed, this will encourage the practice of generating wrong bills and will increase tax evasion," Sisodia said.

The Deputy CM in his letter to Sitharaman said that both papad and kachri papad are basically made in India. Before GST was implemented, most states levied Nil tax on these products. Even after the implementation of GST, 0 per cent GST was levied on papad and kachri papad.

However, a circular from the Union Finance Ministry on January 13 has resulted in a discrepancy, he said.

"Papad and kachri belong to the same food category and they are also prepared using similar raw materials. But by mistake, these products have been put in the category of snacks palette and 18 per cent GST is being levied on them," Sisodia said.

He also said that the Central government has used the word 'fryums' in the circular despite the fact that there is no category named as fryums. It is a popular band that has a varied range of products. In such a situation, it is wrong to keep kachri papad in the category of fryums, he said.

"If we look at the rate chart of GST, we can see that 5 per cent GST is applicable on vermicelli, 5 per cent GST on pizza bread. There is 5 per cent GST on sago. Cereal pellet has 5 per cent GST. Potato pellet has 5 per cent GST. Pasta has 12 per cent GST. Salted cashews and almonds also attract 12 per cent GST. Normal snacks also attract 12 per cent GST. But kachari papad, which is a product exactly like papad, has been kept in the GST category of 18 per cent," Sisodia said.