- Top food companies in India are in disagreement with the GST authority over the imposition of an 18% tax rate on snack foods
- The issue revolves around the classification of snacks as extruded and non-extruded, with extruded snacks facing an 18% GST and non-extruded snacks facing a 12% GST
- Companies like ITC, PepsiCo India, Balaji Wafers, and Prataap Snacks have received notices for additional GST payments totaling around Rs 1,000 crore
- The industry is not in agreement with the classification of snack foods and is calling for clarity from the GST Council to avoid litigation
- Recent months have seen a rise in GST notices for discrepancies in tax payment across various industries
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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