Dy CM Manish Sisodia demands removal of discrepancy in tax rates of ‘Papad’ & ‘Kachri’

New Delhi: Deputy Chief Minister Manish Sisodia sought the removal of the discrepancy in deciding taxes for ‘Papad’ and ‘Kachri’ and wrote a letter to Union Finance Minister Nirmala Sitharaman highlighting the matter.

Due to a clarification circular issued by the Union Finance Ministry on January 13, 18 per cent GST is now being levied on ‘Papad’ as well as Papad-like products, which are commonly known as ‘Kachri’ or ‘Kachri Papad’ which belong to the same category of products. In such a scenario, 0 per cent GST on ‘Papad’ and 18 percent GST on ‘Kachri’ is unjustified, the Minister said. He explained that ‘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.

In his letter Dy CM said that both ‘Papad’ and ‘Kachri’ Papad’ products are made in India and even after the implementation of the GST, 0 per cent GST was levied on ‘Papad’ and ‘Kachri Papad’ which are prepared from similar raw materials. By mistake, these products have been put in the category of snacks palette and 18 percent GST is being levied on them.

Sisodia said that the central government has used the word ‘fryums’ in the circular despite the fact that there is no category named as fryums. “If we look at the rate chart of GST, we can see that 5 percent GST is applicable on vermicelli, 5 percent GST on Pizza bread and there is 5 per cent GST on sago. Normal snacks also attract 12 percent GST but Kachari Papad, which is a product exactly like Papad, has been kept in the GST category of 18 per cent,” he wrote in the letter.