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Ready to binge-watch this weekend? Friday night is here, and a series of new shows is available on Netflix, Prime Video, and other platforms. Moreover, you don't need any other excuse to engage in binge eating. Some watchers like to opt for healthy options while others choose pizza, ice cream, popcorn, etc. Whatever your pick, here’s a heads-up: the cost of your favourite snacks may look a little different soon as the government’s new GST reform kicks in, tweaking tax slabs for several food and beverage items from September 22. This means a few items may become cheaper after the new GST rates.
In this article, we will see the price of items that may come down after GST 2.0. Take a look:
Pizza bread from 5% GST to 0%
Once the new tax rates are implemented, there will be no tax on pizza bread, and that may reduce the price of pizza.
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Condensed milk from 12% to 5%
The GST rate on condensed milk has been reduced to 5 per cent from 12 per cent. Condensed milk is used to make savoury and sweet dishes. This means the price of these items may also be reduced.
Dry fruits and nuts from 12% to 5%
There will 5 per cent GST on dry fruits and nuts now, which was 5 per cent earlier. This means your healthy eating options may also become cheaper now.
Biscuits, cakes, pastries -18% to 5%
If you like to eat biscuits, cakes, and pastries while binge-watching, then GST 2.0 will benefit you, as the price of these items may also get cheaper.
Chocolate and cocoa products- 18% to 5%
The GST Council has also reduced GST on chocolate and cocoa products. Therefore, the price of cocoa-made products can go down.
Ice cream from 18% to 5%
If you like to have ice creams and especially over the weekend, you may get a benefit as GST has been reduced to 5 per cent.
Loose salted and pre-packaged popcorn to come under 5% GST
The salted or spiced popcorn (sold loose or pre-packed and labelled) will attract a 5 per cent GST rate. Caramel popcorn, however, will be taxed at 18 per cent.
Under the older GST reform, there was 5 per cent GST on loose salted popcorn, 12 per cent when pre-packaged, and 18 per cent for caramel variants.
Finance Minister explains the motive of GST reforms
After the two-day GST Council meeting on September 3 and September 4, Finance Minister Nirmala Sitharaman on Friday, September 5, announced that the foremost priority of the government is to ensure that the benefits of the GST tax reforms reach all the common people of the country.
Sitharaman emphasised that the new GST reforms are designed to keep the basic necessities and aspirations of the middle class and the common man of the country. She stressed that 90 per cent of the items fall under the five per cent or below tax slab, whereas only one per cent of the items touch the 40 per cent tax rate.
GST rate rationalisation to cause Rs 10,664-crore shortfall in IGST receipts: GTRI Report
The Central government is expected to face a revenue shortfall of Rs 10,664 crore in Integrated Goods and Services Tax (IGST) receipts due to the recent GST rate rationalisation, according to an analysis report by the Global Trade Research Initiative (GTRI).
The report provided a detailed picture of how the revised GST rates will impact government revenues through taxation on imports.
It stated "the combined effect of cuts and hikes produces a net shortfall of about Rs 10,664 crore in IGST receipts".
The report noted that a significant portion of GST revenue comes from imports.
In FY2024-25, IGST on imports alone contributed Rs 5,33,000 crore, which was about 24 per cent of India's total GST collections of Rs 22,08,861 crore.
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