At its 56th meeting on Wednesday, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, approved a complete overhaul of India's consumption tax since its launch in 2017. The council reduced the current four slabs - 5, 12, 18 and 28 per cent - to the two-rate structure of 5 per cent and 18 per cent. The biggest tax cuts have come on food, medicines, essential items, farm goods, green energy, small cars and bikes.
With the GST reform, several daily consumption food and beverage items are set to become more affordable. Meanwhile, items such as soft drinks and caffeinated beverages will become costlier. The new rates for all products, except pan masala, gutkha, cigarettes, and chewing tobacco products, will be effective from September 22.
Here Is A Complete List Of Food And Beverage Items That Will Get Cheaper:
Chapati And Paranthas
All forms of chapati and paranthas will be charged nil tax, down from the current rate of 5 per cent.
Milk, Chena, Paneer
Tax rate has also been slashed to nil from 5 per cent on ultra-high temperature milk, chena, paneer, pizza bread and khakra.
Tax Rate Cut From 18 To 5 Per Cent For The Following:
- Butter
- Ghee
- Dry nuts
- Condensed milk
- Sausages and meat
- Sugar-boiled confectionery
- Jam and fruit Jellies
- Tender coconut water
- Namkeen
- Drinking water packed in 20-litre bottles
- Fruit pulp or fruit juice
- Beverages containing milk
- Ice cream
- Pastry and biscuits
- Cornflakes and cereals
- Sugar confectionery
- Plant-based milk drinks
Fats, Cheese, Soya Milk Drinks
GST on other fats, cheese and soya milk drinks has also been reduced to 5 per cent from 12 per cent.
Here Is A Complete List Of Beverages That Will Get Costlier:
Carbonated Beverages
Popular soft drinks, such as Coca-Cola and Pepsi, along with other non-alcoholic beverages, will become costlier now, after the GST Council approved a hike in tax rate on carbonated beverages to 40 per cent from 28 per cent at present.
Caffeinated Drinks
Caffeinated beverages to be charged 40 per cent from 28 per cent.
Other non-alcoholic beverages will also become costlier, as the GST rate on these items has been increased to 40 per cent from 18 per cent.
All Goods With Added Sugar
All goods (including aerated waters) containing added sugar or other sweetening matter or flavours to be taxed at 40 per cent from the current 28 per cent.
What About Popcorn? Here Is The New Simplified GST Structure:
The GST rates of popcorn became a hotly debated topic last year after the Council taxed loose salted popcorn at 5 per cent, packaged at 12 per cent, and caramel at 18 per cent. Now there is a more simplified structure, differentiating only based on whether sugar is added or not:
- Salted or spiced popcorn will attract a 5 per cent GST, whether sold loose or packaged.
- Caramel popcorn will be taxed at 18 per cent, as it contains sugar and falls under confectionery.