Sen And Associates Kolkata, West Bengal

sugar-coated hard candy, toffee, chocolate-coated biscuit, and regular chocolate. So, the fear is that if the tax rates are put out in the public domain after the March 15 meeting of the GST Council, manufacturing companies may either stop production or over produce in order to avoid paying a heavy taxation later. This could, in turn, impact the country�s gross domestic product.

GST reforms shall lead to a negative impact on the toy industry : Toymakers Toys ranging between remote-controlled cars and chess sets attract an average indirect tax of around 6%. Traditional toys, which constitute about 90% of all toys sold in the country, are exempted from excise, while some states levy VAT of 5-6%. Under the new regime, a board game falls under a higher tax slab while tax on a toy gun is lesser. Are toy guns more important than educational games like scrabble for enhancing a child's mental abilities? The question is haunting most toy makers. Under GST, the proposed three rates are 12% for toys, 18% for electronic toys and 28% for board games such as chess.