GST on Food: Congress MP Highlights North-South Divide

New Delhi, Mar 24 (PTI) Ernakulam MP Hibi Eden on Monday flagged a north-south divide in GST on food, citing the example of Kerala to claim banana fritters and dal vada were taxed at 18 per cent in the state while north Indian sweets attracted only 5 per cent GST.

Raising the issue during a debate on the Finance Bill, 2025, in the Lok Sabha, the Congress MP accused the Centre of regional discrimination in tax policies and called for a more equitable approach.

"We have seen the government divide the country on the basis of religion, food and even the clothes we wear. But this is the first time we are witnessing a north-south divide even in the GST framework," Eden said.

Kerala delicacies such as banana fritters, dal vada and rice dumplings are taxed at 18 per cent while north Indian sweets such as jalebi, barfi and gulab jamun attract only 5 per cent GST, he said.

Eden highlighted the financial strain caused by the GST structure on small businesses, particularly in Kerala where traditional snacks are a daily staple.

He pointed out that while Kerala's staple foods bore a high tax burden, widely-consumed north Indian sweets enjoyed a lower rate.

The Congress leader also flagged a decline in key economic indicators.

He claimed transport growth had dipped from 6.4 per cent to 5.8 per cent and bank credit growth from Rs 21 lakh crore to Rs 11.5 lakh crore. Cement production, a crucial indicator of infrastructure growth, declined from 10.3 per cent to 3.1 per cent.

"These figures expose the hollowness of the government's claims of robust economic growth. GDP growth does not translate into higher employment or wages while corporate profits continue to surge at the cost of workers' real incomes," Eden said.