Unpackaged farsan just got costlier!

Your loose ‘farsan’, whether ‘khaman, ganthiya or the bhajiya’ you buy from neighbourhood shops, has got costlier, as Goods and Services Tax of 12 per cent is now applicable on them. Farsan-makers have raised the prices by about 10 per cent, passing on the tax burden to the end-user.

However, they say loose, unpackaged farsan is consumed by the masses and so it should be exempted from taxes. With the shravan month setting in, those conducting fasts and relying on ‘farali farsan’ will be hit the most, they say.

Industry sources say sugar and gram flour have been taxed at five per cent, cashew nut and dried grapes at five, other dry/dried fruits at 12 per cent, and chocolates at 28 per cent. Cakes and pastries have been taxed at 18 per cent, while other bakery items will carry 12 per cent GST.

Talking to DNA, Murli Agarwal, owner of Rasmadhur Sweets and president of Ahmedabad Mithai Farsan Dudh Utpadak Vepari Mahajan, said large shop owners have started factoring in 12 per cent GST on their bills. As GST was being rolled out, they said, even officials of the commercial tax department were unaware of the provision.

A section of top officials wondered how unpackaged farsan can be taxed. We told the authorities these are staple food in many parts of the state. On the one hand, the government is launching ‘Annapurna Scheme’ for the poor and on the other hand, it is taxing the goods that are consumed by the masses,” said Agarwal.

At a recent meeting with the officials of the Department of Commercial Taxes, representatives of the association have suggested that small-time sellers of loose farsan be exempted from GST. Businessmen with an annual turnover of up to Rs20 lakh have been exempted, while those earning up to Rs75 lakh annual income have been charged with five per cent of lump sum GST (tax that won’t get a refund).

“We have increased the price of products by about 10 per cent to account for 12 per cent GST. Some of the consumers are curious about the tax, but no one has opposed,” said Kunal Thakkar, partner at Ahmedabad-based Das Khaman.

Jaswant Patel, owner of Jaihind Sweets, said the present interpretation in case of mixed package consisting of sweets, dry fruits and chocolates, the tax levied would be 28 per cent as it contains chocolates. Even khakhras are taxed at 18 per cent, he informed.