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Instant flour mixes for dosa, idli, dhokla cannot be classified as sattu; 18% GST should be levied: GAAAR

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Dosa
Dosa

The Gujarat Appellate Authority for Advance Ruling (GAAAR) has ruled that instant mixes such as idli, dosa, and khaman flour do not fall under the categories of chhatua or sattu, and thus should be subject to an 18% GST. This decision came after Gujarat-based Kitchen Express Overseas Ltd contested the ruling by the GST advance authority. They argued that their seven ‘instant flour mixes’ are not considered ‘ready to eat’ but instead require specific cooking procedures, thus qualifying as ‘ready to cook’.

The company offers flour mixes in powder form, including gota, khaman, dalwada, dahi-wada, dhokla, idli, and dosa. They argued that these mixes are similar to Sattu and should therefore be subject to a Goods and Services Tax (GST) of 5 percent.

GAAAR Ruling on Instant Flour Mixes

The GAAAR dismissed the appellant’s argument, stating that the ingredients used in the production of “instant flour mixes” are not governed by the applicable GST regulations in the same manner as Sattu.

As per a CBIC circular, minor quantities of ingredients used in the preparation of Sattu are explicitly outlined in the GST regulations as qualifying for a 5 percent tax rate.

“Nevertheless, the clarification mentioned does not apply to the current scenario since the products being distributed by the appellant incorporate spices and additional ingredients, a distinction from ‘chhatua or sattu’,” stated the GAAAR.

Continue Exploring: MTR Foods celebrates centenary with record-breaking 123-foot Dosa

The appellate authority further emphasized that the necessity for the end consumer to undergo specific food preparation procedures before consuming the instant mix flour does not justify exempting it from the 18 percent GST levy.

Abhishek Jain, Partner and Head of Indirect Tax at KPMG, noted that classification disputes are frequently encountered and represent one of the most prevalent areas of litigation within the GST framework.

“Even with the issuance of circulars, varying interpretations of the clarifications within these circulars have frequently heightened the difficulties,” remarked Jain.

Rajat Mohan, Executive Director at Moore Singhi, stated that the Gujarat Appellate Authority for Advance Ruling (AAAR) upheld the decision of the Advance Ruling Authority (AAR). They classified several flours under the ‘Kitchen Express’ brand, such as Khaman and Dhokla, under Chapter Heading (CH) 2106 90 99, consequently subjecting them to an 18 percent GST rate.

Mohan explained that the decision was based on the notable inclusion of additives like sugar, salt, and spices in the products. This differentiation sets them apart from the more straightforward flours categorized under chapters 1101, 1102, or 1106, which are taxed at a rate of 5 percent under the GST.

Mohan added that the AAAR clarified that CH 2106 90 99 covers ‘ready to cook’ food preparations. They rejected the appellant’s comparison to ‘sattu,’ affirming that the significant presence of additives in the appellant’s products warrants the imposition of the higher tax rate.

Continue Exploring: Swiggy reveals fascinating insights ahead of World Dosa Day: 29 Million dosas delivered in past year, Bangalore leads dosa consumption

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Is the flour market’s titan losing its sheen? Meet Chakki Peesing, the new contender

Chakki Peesing
Chakki Peesing

According to IMARC analysis, the packaged atta (wheat flour) market size has reached INR 73.9 billion in 2023 and is projected to climb to INR 242.8 billion by 2032. Who would have imagined that simple atta (flour), a household staple, represents such a vast market with a multitude of well-known big and smaller brands? Despite the variety available, consumers often place their trust in the bigger brands. These established names have built their reputation over decades, promising consistent quality and reliability.

However, in an evolving market, even the most trusted brands must innovate and adapt to maintain their sheen. The rise of consumer awareness and a growing preference for authenticity and freshness are now paving the way for new challengers. And in an industry dominated by giants for decades, one brand is daring to challenge the status quo—Chakki Peesing.

Rajeev Khera, the founder of Chakki Peesing, believes that the era of the bigger flour brands might be coming to an end. With 22 years of experience in the industry, Khera saw an opportunity to offer something different. Driven by his own experiences and the changing demands of consumers, he founded the brand in 2020.

“One of the biggest motivations for us to start Chakki Peesing was that the quality of flour available in the market was deteriorating,” Khera explained. “Especially after Covid, people have shifted to healthier eating habits. We wanted to support that change.”

Khera started as a modest store in a locality. Initially, this setup catered to a small, local customer base, but now has moved operations to a larger factory. Now, this brand aims to open more stores in high-footfall areas. “We are targeting key grocery stores within various societies to stock our products. This strategy will enhance our visibility in the market. In 2024-25, we plan to execute this strategy aggressively and aim to open 40 to 50 stores,” he said.

Problem with Big Brands

Khera highlights a critical issue with the long-established flour brands. “In the last 30 to 40 years, the standard flour we consume hasn’t evolved. The needs of people are changing, yet the flour industry has remained stagnant. People are eating the same old atta,” he noted.

The traditional packaged flour companies have struggled to innovate. “Packaged atta companies have tried to introduce customized and fresh products, but they’ve failed because it’s not feasible at their scale,” Khera observed. This stagnation has created a ripe opportunity for newcomers like Chakki Peesing to introduce variety and innovation.

Continue Exploring: Adani Wilmar targets doubling staple foods business within three years

The Chakki Peesing Difference

Chakki Peesing aims to cater to the evolving dietary needs of consumers by offering a range of flour blends and types that go beyond the traditional wheat flour. “Why not get into flours that are better and more varied?” Khera asked rhetorically. “We need to go beyond the ordinary atta.”

Khera’s confidence in Chakki Peesing is rooted in his heritage. “I’m from Madhya Pradesh, the state that grows the best Sharbati wheat. This gives us a significant advantage in sourcing the right kind of wheat for the flour industry,” he said.

But it’s not just about quality wheat. Chakki Peesing is also addressing the logistics and convenience issues faced by urban consumers. “We are solving the problems of sourcing and grinding for urban India. Our goal is to ensure that consumers don’t have to source or grind their wheat themselves,” Khera explained.

Shifting Consumer Behavior

Khera points to a significant behavioral change in how consumers purchase flour. “Just five years ago, people only trusted major marketplaces and brands. Today, the playing field is changing. Trust is being built through word of mouth, and customers are more open to trying new brands,” he said.

This shift is driven by the consistency and quality of Chakki Peesing’s products. “My entire clientele has grown through word-of-mouth referrals. We have not spent much on marketing yet. Once you taste our flour and see that its quality remains consistent, you stick with us,” Khera stated confidently.

Continue Exploring: Sunpure diversifies offerings with the introduction of Sunpure Multigrain Atta

Embracing Health Trends

Chakki Peesing is also capitalizing on the growing trend of health consciousness. With increasing awareness around health conditions like diabetes and hypertension, many consumers are looking for alternatives to traditional wheat flour. “We are fully equipped to handle this kind of scenario. We offer better wheat varieties like Emmer wheat and Black wheat, which are healthier alternatives,” Khera said.

Moreover, Chakki Peesing has developed a range of multigrain and millet mixes to cater to various dietary needs. “We have multigrain blends with varying percentages of wheat to cater to different preferences. For those who want to eliminate wheat altogether, we offer a multi-millet mix,” Khera explained.

Road Ahead

Despite the challenges, Khera is optimistic about the future. “Our growth story is multi-directional. We are focusing on local presence through retail stores, while also expanding our online reach across India. We’re targeting quick commerce platforms like Dunzo and Swiggy Instamart for faster delivery options,” he shared.

Chakki Peesing’s approach is clearly resonating with consumers. “We are seeing significant success in Delhi and NCR. Our strategy of targeting local grocery stores is working well, and we plan to expand this model to other regions,” Khera said. Over the last three years, the brand has established locally, and deliver its products across India within 48 hours. Next year, they aim to achieve three to four times the growth compared to what the brand achieved in 2023-24.

Continue Exploring: Freshey’s enters Indian bread market with delectable Malabar Parota and Whole Wheat Chapati

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United Breweries sets sights on robust growth in premium beer segment

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United Breweries
United Breweries

United Breweries (UBL), a Bengaluru-based company known for producing Kingfisher beer, is eyeing strong growth in the premium beer segment, driven by changing consumer preferences towards premiumisation.

“Premiumization is taking place across various categories as consumers seek superior options, and the beer market is no exception. We’re witnessing a trend of consumers upgrading to higher-quality beers and exploring new brands. United Breweries offers a compelling selection of premium brands, including Kingfisher’s esteemed variants such as Ultra and Ultra Max,” stated Vikram Bahl, Chief Marketing Officer (CMO) of UBL.

Continue Exploring: Premiumization trend to fuel India’s soaring liquor industry, Crisil Report reveals

Two years back, the company launched Heineken Silver, a premium lager variation tailored for individuals who favor a more “sessionable” beer, denoting a lower alcohol percentage than the average.

Continue Exploring: United Breweries unveils Heineken Silver Draught Beer, setting a new standard for crafted refreshment in India

UBL recently introduced Queenfisher, a fresh lager variant positioned as “a celebration of sisterhood.”

The company’s go-to-market strategy prioritizes collaborations with premium bars and restaurants, ensuring consumers encounter top-tier brands in optimal settings.

Driving Factors for Growth: Rising Beer Demand and Market Trends

UBL pinpointed the rising demand for beer, propelled by the increasing affluence within India’s burgeoning economy, as a pivotal growth factor for the company.

“In addition to this, we ensure impeccable execution, availability of the product, well-managed distribution, and prominent display – ensuring all the fundamental aspects are in place,” Bahl further emphasized.

“Spirits have traditionally been the preferred choice for many consumers because of historical factors and favourable tax-related pricing, making whiskies and spirits more accessible. However, I believe there’s a shift happening. Beer is currently experiencing the most rapid growth among major beverage categories,” stated Bahl.

Bahl mentioned that UBL boasts the largest supply network, spanning breweries and contract manufacturers across 30 locations.

The objective is to improve efficiency within this network and expand production capacity, he stated. The beer maker emphasized that the ultimate aim is to make Queenfisher available worldwide.

The key markets for London Pilsner will be Maharashtra and Karnataka.

Presently, it’s accessible in 50-60 countries globally, and the company intends to persist in exploring opportunities for broadening its non-alcoholic brand extensions.

“We maintain a positive outlook on our revenue growth for FY25, fueled by our dedication to category expansion and premiumization, positioning us for consistent growth throughout the year,” Bahl concluded.

In the fourth quarter of FY24, UBL posted a consolidated net profit of INR 82 crore, marking an eight-fold increase compared to the corresponding period last year. Revenue surged by 17.3 percent to INR 4,788.68 crore. During Q4, volume increased by 10.9 percent, primarily led by the South and East regions. The premium segment witnessed significant growth of 21 percent, driven by robust performances from Kingfisher Ultra and Kingfisher Ultra Max.

Continue Exploring: United Breweries’ Q4 FY24 net profit surges five-fold to INR 80.15 Cr

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Ice cream brand Hocco raises INR 100 Cr in a funding round led by Chona Family and Sauce VC, valuation hits INR 600 Cr

Hocco’s managing director Ankit Chona
Hocco’s managing director Ankit Chona

Hocco, an Ahmedabad-based ice cream brand, has raised INR 100 crore ($12 million) in a funding round led by its promoter group, the Chona family, and existing investor Sauce VC. This primary capital infusion, which values the company at INR 600 crore post-investment, also saw participation from angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar.

Hocco’s Managing Director, Ankit Chona, stated that the funds will be used to expand the company’s manufacturing capacity. The eight-month-old brand anticipates generating INR 200 crore in revenue by the fiscal year ending March 2025.

In 2017, the Chona family sold its legacy brand Havmor to the South Korean conglomerate Lotte for INR 1,020 crore. At that time, Havmor’s annual turnover was estimated to be around INR 450 crore.

Following this funding round, Sauce VC, a consumer-focused investment firm known for supporting new-age brands like Mokobara and The Whole Truth, now holds approximately a 10% stake in Hocco.

“We started in October of last year. We were very optimistic, but we did not expect this kind of response. What we expected to do in the second or third year, we actually did in the first year. Our plant’s current capacity ranges between 40,000 and 50,000 litres per day, with an original projection of 15,000 litres by May. By next summer, we will have tripled our capacity to 1.3 lakh litres per day,” Chona said.

Continue Exploring: From scoops to sundaes: Ice cream sales set to soar 15-20% this summer

The Ice Cream Industry Landscape in India

The ice cream industry in India, estimated to be around $5 billion this year, has witnessed the emergence of several new-age brands in recent years.

These new brands include Noto, Get-A-Way, Go Zero, Frubon, and Minus 30, all aiming to carve out a niche in a market dominated by legacy players like Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria group-owned Cream Bell.

Risk capital investors in this sector encompass DSG Consumer Partners, Jungle Ventures, Saama Capital, and Fireside Ventures.

Manu Chandra, founder and managing partner of Sauce VC, remarked, “The growth in the ice cream market mirrors the rise in disposable incomes directed towards impulse and indulgence categories. Platforms such as quick commerce facilitate connections with digitally adept new-age consumers seeking instant gratification for their sugar cravings, a trend not viable five years ago.”

He stated, “The brands currently occupying this price segment have a long history, and our consumer research indicates that Gen Alpha, Gen Z, and even millennials no longer resonate with them.”

Potential Spin-off of HUL’s Ice Cream Business

Earlier, Snackfax reported in April that Hindustan Unilever – India’s largest FMCG company – is exploring the option of spinning off its ice cream business, in possible preparation for eventual sale. The category accounts for around INR 2,000 crore, or roughly 3% of HUL’s sales.

Continue Exploring: Hindustan Unilever evaluates options for ice cream business future amid global restructuring by parent company

Hocco’s Chona mentioned that the company sees quick commerce as an opportunity to expand its business to geographies outside Gujarat – its key territory.

He mentioned, “At present, the majority of our revenue comes from Gujarat with a portion from quick commerce. We initiated quick commerce in February, and since then, our sales through this channel have been doubling every month.”

Future Sales Targets and Strategy

Chona stated that Hocco aims to double its sales in FY26 compared to what it achieved in FY25.

He explained, “Our strategy involves delving deeper into Gujarat while simultaneously expanding into adjacent regions. By the upcoming summer, we intend to launch operations in Rajasthan, Maharashtra, and Delhi-NCR.”

He added, “Quick commerce is poised to significantly disrupt the ice cream industry. As an impulse purchase, it meets demand with 10-minute deliveries. However, the challenge lies in the multitude of brands offered on quick commerce platforms, limiting the depth of available SKUs. Nevertheless, it presents a substantial opportunity.”

Continue Exploring: Havmor Ice Cream unveils exciting new flavors ahead of summer, including Korean-inspired treats

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Campbell Soup Company to divest Noosa yogurt business

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Noosa yogurt
Noosa yogurt

Campbell Soup Company plans to divest its Noosa yogurt business, which it acquired in its recent purchase of Sovos Brands.

In August 2023, Campbell first announced its intent to acquire Sovos, a deal worth $2.7 billion, which was finalized in March of this year. During the announcement, Campbell’s president and CEO Mark Clouse stated that yogurt would not align with their core strategy.

However, Sovos’ other brands, including Rao’s Italian pasta sauces and Michael Angelo’s frozen meals, exceeded expectations.

Continue Exploring: FDA allows yogurt manufacturers to highlight type 2 diabetes risk reduction claims

Campbell’s Q3 Performance and Sovos Brands Contribution

In Campbell’s Q3 financial report for 2024, they noted a “better-than-anticipated contribution from the Sovos Brands business to our performance.” Reported net sales showed a 6% increase, primarily due to the partial quarter of sales contribution from Sovos Brands.

A decision regarding the Noosa business has been reached; however, Clouse refrained from disclosing specifics about a potential buyer for the brand, disposal date, or financial terms of a prospective deal.

Clouse informed analysts, “One of the most delightful surprises to me has been the robustness of the Noosa business. Despite our initial perception that yogurt might not align with our long-term strategic focus, the resilience, uniqueness, and performance of this business have been remarkable. This success is a testament to the exceptional leadership and management by our dedicated team.”

He further remarked, “The Noosa business remains an outstanding product and brand, consistently delivering strong performance. Remarkably, in the quarter, the Noosa Spoonable business saw a return to dollar growth, propelled by the success of its 8oz yogurt. Moreover, the 8oz yogurt has achieved 14 consecutive quarters of dollar consumption growth.”

“Despite our decision to explore strategic alternatives for the business, given yogurt’s lack of alignment with Campbell’s strategic focus, the performance of the business has surpassed our expectations.”

Continue Exploring: Dairy-free yogurt producer The Coconut Collaborative secures £1.5 Million in Series B funding for growth

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Pepper Lunch to launch first Florida location, set for debut in September

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Pepper Lunch
Pepper Lunch

Pepper Lunch, a Japan-based fast-casual dining concept, has signed an agreement to open its newest location just outside Tampa, Florida, in the United States.

Situated at 4699 Park Blvd in Pinellas Park, this outlet marks Pepper Lunch’s first location in Florida.

This marks the debut of the first modern prototype design since Hot Palette America, Pepper Lunch’s US parent company, assumed control of its American operations.

Scheduled to open in September 2024, the new location will span 1,435 square feet and offer seating for 38 guests. Additionally, a 500-square-foot patio will provide 25 more outdoor seats.

Continue Exploring: Starbucks teams up with GrubHub to launch delivery services in the US 

Franchise Agreement and Expansion Plans

Owned and operated by Majestic Restaurant Group, the outlet is part of an agreement to develop ten units by 2028 across the Tampa, Orlando, and Gainesville markets.

Pepper Lunch CEO Troy Hooper stated, “Pepper Lunch provides a uniquely different dining experience with authentic, approachable cuisine.”

“With the experienced local operators at Majestic Restaurant Group, we eagerly anticipate opening our doors in the coming months. Residents of the St. Petersburg area will soon discover why Pepper Lunch is one of the most popular dining concepts in the world,” said Hooper.

Global Presence of Pepper Lunch

Founded in 1994, Pepper Lunch is one of Japan’s largest franchise restaurant brands, boasting over 500 locations in 15 countries.

The company is now looking for experienced franchise partners to expand its business model throughout the United States.

Pepper Lunch presents a teppanyaki-style dining experience featuring steaks, curry rice, teriyaki, and pasta-based dishes, all served on the brand’s signature hot iron plate, including the renowned Pepper Rice.

Majestic Restaurant Group has a track record of developing and running various dining concepts, each providing a distinct experience crafted to suit the preferences and tastes of its clientele.

The group has launched specific concepts, including nearly a dozen sushi, poke, and dumpling restaurants. One such concept is Zukku Sushi, which has a presence in Tampa.

Continue Exploring: Redberry unveils new Taco Bell location at Toronto’s Union Station

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Call Chotu expands beyond cloud kitchen, enters offline market with new diner in Saket, Delhi

Call Chotu
Call Chotu

Call Chotu, originally conceptualized as a cloud kitchen brand in 2019 that took Delhi’s online ordering by storm, has announced the launch of their first offline space: Chotu’s All Day Diner & Bar.

Chotu’s Diner caters to all occasions, whether it’s a quick breakfast, post-work relaxation, or a leisurely lunch, making it the ideal destination for any moment.

Conceptualised by Chef Chiquita Gulati in collaboration with her husband and partner Sumit Gulati, a third-generation restaurateur from the renowned Gulati family, known for their iconic Gulati Restaurant on Pandara Road since 1959, Chotu’s Diner offers a delightful array of classic and beloved comfort foods from around the world, catering to the tastes of Delhi’s residents.

“We introduced Call Chotu five years back, aiming to provide something for everyone, from khichdi enthusiasts to momo aficionados. Today, with the introduction of Chotu’s All Day Diner & Bar, we’re expanding this concept further, infusing our distinctive touch into well-loved dishes. Collaborating with master mixologist Yangdup Lama, we’ve crafted signature cocktails perfectly complementing our menu, ensuring an unforgettable experience for our guests,” shared Chef Chiquita Gulati, co-founder and creative force behind the Call Chotu brand.

Live Bakery: Freshly Baked Delights Every Hour

Presenting a Live Bakery where their renowned ‘light as air’ ladi pav and kulchas are freshly baked every hour, the diner exudes an ambiance of comfort and relaxed indulgence.

Immersive Ambiance: Design and Interiors

Step inside the chic diner, where meticulously designed interiors transport you back to the carefree days of childhood with a colorful display of vintage telephones. Adorning one side is a vibrant mural illustrating scenes from Chotu’s Diner, creating an atmosphere that seamlessly blends playfulness and elegance. Whether you’re donned in casual attire, professional garb, or dressed to impress for a night on the town, Call Chotu invites you in with a welcoming embrace of comfort and sophistication.

In the past five years, Call Chotu has emerged as a leading cloud kitchen brand in Delhi, Gurgaon, and Noida, with an impressive track record of nearly a million orders served since September 2019. It holds the top position as the preferred Indian delivery brand across four prominent delivery zones – Gk, Vasant Kunj, DLF Phase 4, and Sec 73, Noida.

The brand is set to launch a new Delivery & Take Away kitchen in Rajouri Garden, slated to open its doors by the end of this month.

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Diageo launches single malt Crown Royal Canadian whisky

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Diageo’s Crown Royal
Diageo’s Crown Royal

Diageo is expanding its range of Crown Royal Canadian whiskies with the introduction of a new single malt.

The beverage giant is introducing the Crown Royal Single Malt Canadian Whisky, a step it described as “disrupting the category.”

Crafted at the Valleyfield Distillery located west of Montreal, Crown Royal Single Malt is distilled solely from 100% malted barley grains.

Continue Exploring: Diageo raises the bar in India with the introduction of world’s finest tequila, Don Julio 1942

Availability and Pricing

The whisky, boasting an ABV of 45%, is accessible throughout the US with a suggested retail price of $54.99. Diageo announced that the whisky is purchasable both in-store and via your preferred online retailers.

Jesse Damashek, Senior Vice President of Diageo’s North American Whiskeys division, remarked, “As pioneers in the whisky industry, we’re revolutionizing the category with this innovative addition – characterized by our trademark smoothness and distinctive Canadian heritage.”

Flavor Profile and Distinctive Characteristics

According to the company, the whisky presents consumers with notes of creamy vanilla and fruity banana upfront, transitioning into flavors of caramel, apple, and baking spices, culminating in a finish highlighted by lingering hints of spice and warm cinnamon.

Diageo states that Crown Royal holds the title of being the “top-selling Canadian whisky brand globally.”

In March, reports indicated that the construction of Diageo’s Crown Royal Canadian whisky distillery in St. Clair Township, Ontario, had yet to commence.

The company initially unveiled its intentions to construct a new facility for the Crown Royal brand in March 2022.

Back then, the company stated that construction was slated to commence later that year and anticipated completion by 2025.

However, as reported by The Sarnia Journal, there were no indications of construction work having commenced at the site in March.

When queried about the project’s status at that time, a spokesperson from Diageo responded in a statement, saying, “We are actively preparing for the construction phase of our new site. Further details regarding the project timeline will be shared at a later date.”

Continue Exploring: Diageo’s Captain Morgan unveils exciting line of RTD cocktail-inspired malt beverages!

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GSTN rolls out dedicated form for tobacco manufacturers to report inputs, outputs to tax authorities

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Cigarette
(Representative Image)

The GST Network (GSTN) recently introduced a dedicated form aimed at manufacturers of pan masala and tobacco products. This form, GST SRM-II, enables them to report their inputs and outputs procured, aiding tax authorities in preventing evasion. Interestingly, this follows closely on the heels of GSTN’s launch of form GST SRM-I, designed for registering machines utilized by these manufacturers, marking a proactive effort to streamline compliance within the industry.

Continue Exploring: GSTN introduces new reporting sections in GSTR-1 for enhanced accuracy in tax filings

Form GST SRM-II, the second form, is likewise accessible via the portal. In a June 7 update to its taxpayers, GSTN stated that businesses who manufacture Pan Masala & Tobacco products can now record the specifics of the inputs and outputs that they purchase and use for the relevant month.

Rajat Mohan, Executive Director at Moore Singhi, highlighted that the recently launched Form GST SRM-II necessitates comprehensive monthly reporting of both inputs and outputs.

Mohan emphasized that this form is geared towards bolstering transparency and accountability within the manufacturing sphere of Pan Masala and Tobacco products. He stressed the importance for taxpayers to diligently record their input procurement and consumption to mitigate discrepancies and ensure precise tax declarations.

He added that taxpayers should acquaint themselves with the details and instructions outlined in these forms to facilitate smooth compliance and steer clear of any possible penalties.

In January, the Central Board of Indirect Taxes and Customs (CBIC) unveiled a revised registration process and monthly return filing system, aimed at enhancing GST compliance among manufacturers of pan masala and tobacco products, initially set to take effect from April 1. However, the deadline was subsequently extended to May 15.

The initiative to revamp the registration, record-keeping, and monthly filing processes for such enterprises was targeted at enhancing GST compliance specifically within the manufacturing sector of pan masala and tobacco products.

Penalties and Amendments in Finance Bill 2024

With effect from April 1, manufacturers of pan masala, gutkha, and similar tobacco products will be subject to a penalty of up to INR 1 lakh for failing to register their packing apparatus with the GST authorities, according to Finance Bill 2024, which also amends the GST rules.

However, this penalty provision has not been officially announced yet.

The procedure was designed to be applicable to manufacturers of various tobacco-related products, including pan-masala, unmanufactured tobacco (with or without a brand name), ‘Hookah’ or ‘gudaku’ tobacco, smoking mixtures for pipes and cigarettes, chewing tobacco (without lime tube), filter khaini, scented tobacco, snuff, as well as branded or unbranded ‘Gutkha’, among others.

Manufacturers of these tobacco products were mandated to electronically provide details of the packing machines utilized for filling and packaging packages using Form GST SRM-I within 30 days of the notification taking effect, namely April 1, 2024.

The GST SRM-II, detailing input and output statements, was to be filed by the 10th of the following month.

Continue Exploring: Telangana implements statewide ban on sale, production, and distribution of tobacco and gutka products

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Cream Stone expands presence with new outlet in Vellore, Tamil Nadu

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Cream Stone
Cream Stone

In a strategic move, Cream Stone Ice Cream Concepts, a prominent player in the Indian ice cream industry, is expanding its presence to counter the surging heatwave across the country. The brand recently opened a new outlet in Vellore, Tamil Nadu, marking another step forward in its expansion plans.

Continue Exploring: Demand soars for cola, beverages, and ice creams as heatwave grips India

Established in 2009 in Hyderabad, Cream Stone has left a substantial mark on the ice cream market with its distinct ice cream concept. Unlike traditional methods, Cream Stone focuses on hand-mixing and beating ice cream on a frozen cold stone. This technique enables precise blending of ingredients and ice cream, resulting in a distinctive artisanal dessert. This innovative approach has struck a chord with customers, aiding the brand in establishing a niche for itself in a fiercely competitive market.

Throughout the years, Cream Stone has ventured beyond Hyderabad, solidifying its foothold in numerous Indian cities such as Bangalore, Chennai, Pune, Vizag, Cochin, Coimbatore, and beyond. This expansion underscores the brand’s dedication to delivering its unique ice cream experience to a broader audience.

Franchise-Driven Growth Strategy

The brand’s expansion strategy relies on a franchise-driven model. Nonetheless, Cream Stone’s franchising methodology is discerning and precise. They refrain from forming partnerships, joint ventures, private limited companies, or limited liability partnerships (LLPs). Instead, they concentrate on individual entrepreneurs committed to managing a store as a primary business. This guarantees that every outlet upholds the elevated standards and excellence synonymous with Cream Stone. Remarkably, this franchise framework is exclusive to areas outside of Hyderabad, indicating a hands-on operational strategy within their hometown.

Growing Footprint: Cream Stone’s Nationwide Store Network

Presently, Cream Stone boasts 15 stores across India, according to the company’s website. This network of stores not only provides customers with a delightful ice cream experience but also demonstrates the brand’s growing footprint in the Indian market. With its recent opening in Vellore, Tamil Nadu, Cream Stone continues to build on its success, bringing its unique ice cream offerings to more consumers and solidifying its position in the ice cream industry.

Continue Exploring: From scoops to sundaes: Ice cream sales set to soar 15-20% this summer

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