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Business
Industry questions 0% GST on Isabgol in Gujarat versus 5% elsewhere
✍️ Bhaskar English
🗓 05 Sep 2026, 12:03 PM
👁 4
Manufacturers of Isabgol have highlighted a discrepancy in GST rates, with Gujarat applying a 0% rate while other states levy 5%, prompting calls for uniformity under the One Nation‑One Tax regime.
The central government’s One Nation‑One Tax framework is being tested after Gujarat announced a zero‑percent GST on Isabgol, a widely used dietary fibre, while the rest of the country continues to charge the standard 5% rate.
Industry bodies say the divergent treatment creates a pricing advantage for producers operating in Gujarat and could distort inter‑state trade.
Representatives of major Isabgol exporters have approached the GST council, urging a uniform tax structure to prevent market fragmentation and protect revenue streams.
Officials from the Ministry of Finance indicated that the issue is under review and that any amendment would require consensus among all states, reaffirming the principle of a single tax regime across India.
Industry bodies say the divergent treatment creates a pricing advantage for producers operating in Gujarat and could distort inter‑state trade.
Representatives of major Isabgol exporters have approached the GST council, urging a uniform tax structure to prevent market fragmentation and protect revenue streams.
Officials from the Ministry of Finance indicated that the issue is under review and that any amendment would require consensus among all states, reaffirming the principle of a single tax regime across India.