The centre in its 54th GST council meeting wishes to reduce the cost of namkeen and savoury products, Finance Minister Nirmala Sitharaman cited in the press meet. From 18% to 12%, the GST rate on such products has lessened.
The decision on namkeens, extruded, expanded savoury food items – GST rate on such items has been lessened from 18 to 12 per cent, FM cited in a press. The FM also mentioned that the GST rate has been lessened prospectively and not retrospectively.
The engaged food items in this are extruded or expanded savoury or salted products and not including unfried or uncooked snack pellets irrespective of their name produced via extrusion and categorized under HS 1905 90 30.
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The same aligns the rate with that of nankeens, Bhujia, mixture, Chabena (pre-packaged and labelled), and similar ready-to-eat preparations classified under HS 2106 90.
Snacks produced through the extrusion process will be levied to tax at 18 per cent. However, other snacks and savoury items, like Bhujia, might charge 12 per cent GST.
The current 5% GST on the un-fried or un-cooked snack pellets produced through extrusion will be continued.
At present, the expanded snacks charge 18% GST rates, and the regular savoury snacks would be levied to tax at 12%, which the recent ratification addressed.
The councils’ Fitment committee suggested categorizing these items as savoury snacks. Hence new matters would be levied to 12% GST and the current cases would continue to have an 18% GST within that time.
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The press discussion was conducted by the Finance Minister, Minister of State for Finance Pankaj Chowdhury, Revenue Secretary Sanjay Malhotra, Chairperson CBIC Sanjay Kumar Agarwal, and researchers Shashank Priya and Vivek Ranjan in New Delhi.
Additional Major Announcements in 54th GST Council Meeting
In reply, two new Groups of Ministers (GoMs) have been made, one would concentrate on medical and health insurance, and the other to decide compensation cess usage after March 2025.
GoM on rate rationalization comprises of the new members, particularly for the medical insurance, has been asked to provide the report in October for discussion in the meeting of the committee in November.
Also, the GST council has announced a rate reduction on cancer drugs from 12 to 5 per cent.
