Pune: Lonavla’s famous delicacy ‘chikki’ is currently in news over the confusion about its classification under the Goods and Services Tax (GST) regime. Traders and GST officials are at the loggerheads over the issue of levying a tax on the sale of chikki.
Traders are claiming that chikki should be put in the sweets category, which invites 5 per cent GST. However, officials are charging 12 per cent GST on the product by putting it in the dry fruit product category. Dry fruit is also used for making Lonavla chikki.
The confusion prevails ever since GST has been rolled out in the country from July 1. Earlier, there was 6-pc VAT on the product. Traders claim that no excise duty was applicable for the product. However, GST officials have been levying a blanket 12 per cent GST on it.
Some traders refused to pay 12 pc GST. Later, an unknown person filed a complaint on the portal of the prime minister’s office.
Traders also approached the finance ministry demanding that the government should come with a clarification on the issue.
Mangesh Agarwal of famous Maganlal Chikki said, “Our main demand is that chikki should be classified as a sweet.”
“It means 5 pc GST is applicable to the product. There is no clarity over its classification under GST. Therefore, officials are levying 12 pc GST. Currently, we are paying 5 pc GST. We expect the government comes with a proper classification soon so that the confusion is cleared,” Agarwal added.
When contacted, a senior GST officer from Akurdi told Sakal Times, “Traders have been raising their demand for the past couple of months. Since dried fruit is also used in chikki, it is categorised under the dried fruit products attracting 12 pc GST. We have written to the authorities in New Delhi to clarify on the classification of the product. A notification to the effect is expected to be issued on November 15.”
