Higher GST on ayurvedic products disappointing, says Patanjali

Patanjali Ayurveda, founded by yoga guru Baba Ramdev, has steered its way ahead of India's well-settled consumer goods companies like Nestle, Colgate-Palmolive and Hindustan Unilever, having gained massive followers and revenues in the past few years.

However, the Haridwar-based company is not happy with the tax slab on Ayurveda products under the soon to be implemented Goods and Services Tax (GST).

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As passed by the GST council, products that Patanjali manufactures would fall under the category of 12% tax slab, more than double of the 5% tax presently levied on them.

"We request the government for a review of the GST rate for the ayurvedic category in the interest of the common man. Without good health or good living, there cannot be 'achhe din' (better days)," Patanjali Ayurved spokesperson SK Tijarawala told ET.

"Increasing the GST rate on ayurvedic products is disappointing and disheartening. We are the ones who have made ayurveda reach consumers at affordable prices, and other companies have followed our lead," Tijarawala added.

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Other companies that would have to face the heat of this rate of GST are Dabur and Emami, dealing in ayurvedic products.

Talking about the effect on the prices of its product after the implementation of GST, Patanjali Ayurveda said that it will factor in input credit adjustments before deciding.

"Initially, we will not pass on any hike to consumers, and review the price strategy at a later stage," Tijarawala had said earlier.