Shares of snack giants such as Gopal Snacks Ltd., Prataap Snacks Ltd., and Bikaji Foods Ltd. surged over 7% on 10th September, following the GST Council’s announcement of a rate revision on Namkeen yesterday.

At the 54th GST Council meeting on Monday, Finance Minister Nirmala Sitharaman announced a prospective reduction in the GST rate on certain products to 12% from the previous 18%.

It’s important to note that the GST rate on namkeen or savoury items like fruit and vegetable chips, bhuijas, and snack foods was already set at 12%.

The GST rate cut on extruded snacks now aligns with the rates of other savoury snacks. The Finance Minister stated that snacks made using the extrusion process will be taxed at 18%, while other snacks like bhujia may fall under the 12% GST rate.

Unfried or uncooked snack pellets produced through extrusion will still be taxed at a lower GST rate of 5%.

So far in 2024, Bikaji Foods has rallied by 53%, Gopal Snacks has given negative returns of 9%, and Prataap Snacks has fallen over 27%.

At 10:38 AM, Bikaji Foods was up 3.64% at Rs 865.30, Gopal Snacks was up 6.60% at Rs 348, and Prataap Snacks was up 2.75% at Rs 836.

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