September 10, 2024
New Delhi, India
Shares of snack companies Bikaji Foods, Gopal Snacks, and Prataap Snacks experienced significant gains on Tuesday, following a reduction in Goods and Services Tax (GST) on extruded namkeen snacks. The government announced the GST rate cut in the 54th GST Council meeting.
Stock Movements:
- Bikaji Foods: Share price increased by up to 7.76%.
- Gopal Snacks: Share price surged 10%.
- Prataap Snacks: Share price rose 8.05%.
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GST Rate Reduction Details:
- New GST Rate: The GST on extruded namkeen snacks has been reduced from 18% to 12%.
- Affected Products: The GST rate cut applies to extruded or expanded snacks, such as fruit and vegetable chips, bhujiya, and other similar snack foods, aligning the rate with that of other savory snacks.
- Unchanged GST Rate: A 5% GST rate continues on un-fried or un-cooked snack pellets manufactured through extrusion.
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This policy change aims to standardize the GST rates on various snack items and provide relief to consumers and companies in the snack industry.
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