 "Bikaji, Gopal Snacks stocks get tastier as GST council cuts rate; up 8%")
Shares of packaged snack companies, Gopal Snacks and Bikaji Foods International gained up to 8.5 per cent in the morning deals on Tuesday, September 10, 2024. Individually, Gopal Snacks shares soared 8.5 per cent, while Bikaji Foods advanced 7.7 per cent on an intraday level.
The counters saw buying after the Goods and Services Tax (GST) Council slashed GST on extruded and savoury items.
At around 10:23 AM, shares of Bikaji Foods were up 4.55 per cent at Rs 872.9, while Gopal Snacks shares advanced by 5.76 per cent at Rs 345.1 per share against the BSE Sensex's rise of 21.7 points at 81,581.24.
In its 54th GST Council meeting held on Monday, September 9, Indian Union Finance Minister, Nirmala Sitharaman announced the GST rate cut for namkeens from 18 per cent to 12 per cent.
"The GST rate of extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 to be reduced from 18 per cent to 12 per cent at par with namkeens, bhujia, mixture, chabena (pre-packaged and labelled) and similar edible preparations in ready for consumption form which are classifiable under HS 2106 90," the Ministry of Finance notification read.
It also clarified that the GST rate of 5 per cent will continue on un-fried or un-cooked snack pellets manufactured through the process of extrusion.
The food extrusion process uses heat, pressure, and shearing to cook food materials continuously.
The food extrusion process uses heat, pressure, and shearing to cook food materials continuously.
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"To also clarify that the reduced GST rate of 12 per cent on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 is applicable prospectively," the notification read.
In the past one year, shares of Bikaji Foods have given returns of 58.4 per cent against BSE Sensex's rise of 22.4 per cent. Meanwhile, since its listing on March 14, 2024, Gopal Snacks shares have gained 9.3 per cent against the 30 stock index's rise of 11.5 per cent.