GST on namkeen, ice cream, paratha, and Cheese: In a historic reform, Finance Minister Nirmala Sitharaman-led the GST Council, has approved a sharp overhaul of the Goods and Services Tax (GST) structure.
Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.
As the last week remains before the country moves towards the rationalized rate structure of two slabs – 5% and 18% – along with a special slab of 40%, customers are wondering how much daily use of items will decrease eventually.
Let’s see how much items of namkeens, ice cream, cheese and paratha may decrease from the next week.
From next week, namkeens, ice cream, cheese, and parathas will attract only 5% GST instead of the existing 12%, making them more affordable.
Namkeens, Bhujias To Get Cheaper
The GST council has reduced the GST from 12 per cent to 5 per cent on namkeens, bhujia, mixture, chabena and similar edible preparations ready for consumption form (other than roasted gram), pre-packaged and labelled items.
With lower tax rates and if companies pass on the benefits, customers may see a price cut of about 6-7 per cent. For instance, on a Rs 100 packet of namkeen, the tax burden will now fall to Rs 5 from Rs 12 earlier.
This will boost the salty snacks market.
Ice Cream Gets More Yummy And Sweeter
The GST council has reduced the tax on ice cream from 12 per cent to 5 per cent.
This means a Rs 200 tub that earlier carried Rs 24 GST will now attract only Rs 10, potentially making it Rs 14 cheaper.
Cheese To Become More Cheesy
Cheese lovers will get some relief as GST on cheese has been slashed from 12% to 5%. A Rs 400 block that earlier had Rs 48 tax will now carry only Rs 20, making it Rs 28 cheaper if benefits are passed on.
Packaged Parathas May See Price Drop as GST Falls
Packaged and frozen parathas will also get cheaper, with GST brought down from 12% to 5%. For a Rs 150 pack, tax will drop from Rs 18 to Rs 7.5, a saving of Rs 10.5.
The ready-to-eat and frozen food market is expected to get a strong push from this tax relief.
