More Namkeens at the Same Rate, Center Slashes GST Rate to 12% from 18%

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.

Read Also: Food Grains Merchants Demand a Solution for Grievances Concerning GST from the Centre

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.

Read Also: GST Rate on Milk, Paneer & Dairy Products with HSN Code

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.

Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

10 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

12 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

13 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

15 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago