The shares of Gopal Snacks Ltd, Bikaji Foods Ltd and Prataap Snacks Ltd jumped more than 7% Tuesday after the GST Council announced a revision in rates for Namkeen the previous Monday.
The GST Council on Monday announced an increase in the tax rate for namkeens extruded from 18 % to 12 %.
Let us inform our readers that the GST rate for namkeen or salty foods like vegetable chips and fruit Bhujia, snacks, and more is currently 12 %. The decrease in GST rates for extruded snacks is similar to other savory snacks.
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Company Shares
The share of Bikaji Foods Ltd is trading 2.31% higher at ₹ 854.20 on Tuesday. Stock in Bikaji Foods Ltd has gained nearly 60% in the first half of this year, whereas the share of Prataap Snacks Ltd is rising by 8% and the share price reached a high intraday that was 836.20 rupees.
The stock has fallen more than 23% so far this year. The share of Gopal Snacks Ltd is trading over 8.33% higher, at 353.65 rupees on the 10th of September.
An expert has said He doesn’t believe the rationalization of rates for extruded snack products will have any major effect on companies that are listed.
What Does The Finance Minister Have To Say?
We will tell you that the decision was made on salty foods extruded and expanded of Namkeen.
The GST rate for these products will be decreased by 18% to 12 %. This is not retroactively, but instead prospectively.
Financial Minister and Finance Minister Sitharaman has said she was announcing that the GST rate of extruded, or extruded products such as Namkeen (excluding non-cooked and unfried snack food pellets no matter what name they are, produced using extrusion) is to be cut from 18 percent to 12 percent.
It is similar to the same as Namkeen, Bhujia, and Mixtures (pre-packaged and labeled) as well as similar food preparations available in ready-to-eat in their ready-to-eat form.
Food pellets that are not cooked or fried and produced by extrusion, whichever method is known, will continue to receive a tax amount of 5 %.
Quick Facts
| Company name | Gopal Snacks |
|---|---|
| GST Rate Change | 18% to 12% |
| GST Rate Type | Extruded Namkeen |
| Current Share Price | ₹353.65 |
| Share Increase | 8.33% on Tuesday |
| Date of Increase | 10th September |
| Company name | Bikaji Foods |
|---|---|
| GST Rate Change | 18% to 12% |
| GST Rate Type | Extruded Namkeen |
| Current Share Price | ₹854.20 |
| Share Increase | 2.31% on Tuesday |
| Gain This Year | 60% |
| Company name | Prataap Snacks |
|---|---|
| GST Rate Change | 18% to 12% |
| GST Rate Type | Extruded Namkeen |
| Current Share Price | ₹836.20 |
| Share Increase | 8% on Tuesday |
| Yearly Fall | 23% |
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