During Raksha Bandhan, we reported that there was a lack of clarity on how much GST was to be levied on various sweets. This, because of the raw materials attracting GST varying from 12 per cent (for dry fruits) to 28 per cent (for chocolate, edible silver and gold foil). The result was some vendors hiking the prices of dry fruit sweets by around `60 per kg, while others stuck to a constant five per cent GST on all sweets. Come Ganesh Chaturthi and vendors still claim they’ve not received much clarity. But thankfully, a majority of popular vendors have decided to go with five per cent on all sweets, be it modaks or laddoos.
“The information we’ve got is that we can charge five per cent GST on sweets. Even though raw materials are expensive and attract different GST the final product is a mithai. And sweets can be cahrged only five per cent,” says Shrikrushna Chitale, of another popular sweet shop. However, sweet vendors hope for more clarity in a month, as they have filed their GST returns recently. “We hope that in a month we get some clarity on how much we can charge for sweets with expensive ingredients. Now we are just considering them all ‘sweets’ irrespective of ingredients,” informs Sachin Gadve from a sweet shop.
Staying away from chocolate?
It’s definitely good news that we’ll only be paying five per cent, irrespective of what sweets we buy, for now. But the five per cent formula has not worked out favourably for all vendors and a few, like Bhawarji Rathod of a well known sweet shop, are simply staying away from the expensive ingredients. “Chocolate and silver foil are costing us a lot. So we have stopped making chocolate modaks this year to avoid complications. We hope to get more clarity in a month,” he says.