Mumbai: Shares of Bikaji Foods and Gopal Foods rose by over 5% on Tuesday morning, a day after the Centre announced a cut in the GST rate on Namkeen and savoury products from 18% to 12%.
Finance Minister Nirmala Sitharaman announced these cuts at the 54th GST Council meeting on Monday.
However, ready-to-eat snacks made using the extrusion process will continue to be taxed at 18%, while un-fried or uncooked snack pellets made through the extrusion process will be levied 5% GST, the FM clarified.
Bikaji Foods International offers snacks across six categories: bhujia, namkeen, sweets, and papad. At 9.30 am, Bikaji Foods’ shares rose to Rs 879 on the NSE, marking an over 5% rise from yesterday’s close. At the time of writing at 3.14 pm, Bikaji Foods’ shares are trading at 3.20% up at Rs 861.60.
Prataap Snacks, which makes nankeen, extruded snacks, and potato chips under the Yellow Diamond brand, saw its shares rise to Rs 859, marking a 5.7% rise in the morning business hour. At 3.18 pm, it was trading at Rs 819.70, up 0.74%.
Shares of Gopal Snacks, which manufactures ready-to-eat namkeens, potato chips, snack pallets, etc., rose 4.5% to trade at Rs 341.40 on NSE in morning business hours. At 3.24 pm, it was trading even higher at Rs 350.35, marking a gain of 7.32%.
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