GST Cut From September 22: Will Namkeens, Ice Cream, Cheese & Paratha Become More Affordable?
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In a landmark decision, the GST Council led by Finance Minister Nirmala Sitharaman has approved a major simplification of the Goods and Services Tax (GST) structure. Effective from September 22, the system will be streamlined into just two primary tax slabs - 5% and 18%. In addition, a higher 40% slab will apply to luxury and sin goods. The government has described this as a “historic Diwali gift” for citizens and businesses alike, aimed at reducing the cost of living, encouraging consumption, and giving a boost to the economy.
As the new tax structure comes into effect next week, many consumers are eagerly waiting to see how much everyday items will become cheaper. Essential and frequently consumed products like namkeens, ice cream, cheese, and parathas are among the biggest winners in this reform.
Ice Cream to Become More Affordable Ice cream lovers will also benefit from this tax relief. The 12% GST rate on ice cream has been reduced to 5%, meaning that a Rs 200 tub that earlier included Rs 24 as tax will now carry only Rs 10. This can translate to a price drop of about Rs 14, making your favorite frozen treat even more tempting.
The reform will also help dairy lovers as the GST on cheese is lowered from 12% to 5%. A block of cheese worth Rs 400 will now have a tax of just Rs 20 instead of Rs 48. If the benefit is fully passed on, customers could save around Rs 28 per purchase, making cheese a more budget-friendly option.
Packaged and Frozen Parathas to See Lower Prices Packaged and frozen parathas, a staple for many households, will also enjoy a tax cut from 12% to 5%. For instance, a Rs 150 pack that earlier attracted Rs 18 as GST will now have only Rs 7.5 in tax, leading to a potential saving of Rs 10.5.
The lower tax rates are expected to give a significant push to the ready-to-eat and frozen food sectors, encouraging higher consumption and helping businesses expand.
With these changes coming into effect soon, consumers can look forward to relief at the checkout counter, especially on their everyday snacks and frozen foods.
As the new tax structure comes into effect next week, many consumers are eagerly waiting to see how much everyday items will become cheaper. Essential and frequently consumed products like namkeens, ice cream, cheese, and parathas are among the biggest winners in this reform.
Namkeens, Bhujia and Similar Snacks to Get Cheaper
The GST rate on packaged and labelled edible snacks - such as namkeens, bhujia, mixture, and chabena (other than roasted gram) – will be slashed from 12% to 5%. For example, a Rs 100 packet of namkeen that previously carried Rs 12 as GST will now attract only Rs 5, potentially reducing its price by around 6-7%, provided companies pass on the benefits to consumers. This cut is expected to give a fresh boost to the salty snacks market.Ice Cream to Become More Affordable Ice cream lovers will also benefit from this tax relief. The 12% GST rate on ice cream has been reduced to 5%, meaning that a Rs 200 tub that earlier included Rs 24 as tax will now carry only Rs 10. This can translate to a price drop of about Rs 14, making your favorite frozen treat even more tempting.
Cheese Lovers Get a Break
The reform will also help dairy lovers as the GST on cheese is lowered from 12% to 5%. A block of cheese worth Rs 400 will now have a tax of just Rs 20 instead of Rs 48. If the benefit is fully passed on, customers could save around Rs 28 per purchase, making cheese a more budget-friendly option. Packaged and Frozen Parathas to See Lower Prices Packaged and frozen parathas, a staple for many households, will also enjoy a tax cut from 12% to 5%. For instance, a Rs 150 pack that earlier attracted Rs 18 as GST will now have only Rs 7.5 in tax, leading to a potential saving of Rs 10.5.
The lower tax rates are expected to give a significant push to the ready-to-eat and frozen food sectors, encouraging higher consumption and helping businesses expand.
With these changes coming into effect soon, consumers can look forward to relief at the checkout counter, especially on their everyday snacks and frozen foods.
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