18% GST on pickles will blow a death knell to the industry, at present 26 of the 29 states of the country tax pickles at the rate of 5%. Karnataka imposes none, while Rajasthan and Kerala impose VAT on pickles at a higher rate. Add 2% Excise to it and the weighted average of Octroi amounts to 0.1%. That totals to 7.1% tax on pickles at present, which the GST Council intends to raise to a whopping 18%.
90% of the agri-raw products used in pickle industry are GST exempted. Therefore the entire tax is recovered from the manufactured ready pickle which results in the Burdon of increased in pickle price. This may lead to closure of many pickle manufacturing units resulting in a big blow to the industry and to the people who depend on it.
