Sirsi: Through implementation of Goods and Services Tax (GST) facilitated arecanut markets, it has hit the industry with the impact of additional tariffs on the production of sweet masala ingredients and pan masala products.

“Before implementation of GST, We paid 5.5 percent VAT, 2 percent CST and excise on sweet nut powder. But after GST it has been taxed at 18 percent Totggars Co-operative Sales Society (TSS) is producing 80 quintals of sweet nut powder every day. Increased tax has become a burden,”TSS General Manager Ravi Shetty said.

Pan masala products have high demand across the country. But with GST, tax has risen to 88 percent from earlier 43 percent. Through under GST, tax burden on sweet nut has fallen, it will take three to four months for nut products to go return to profits, he added.