GST Rate Cut: Namkeens, Ice Cream, Cheese and Parathas to Get Cheaper From September 22
GST Rate Cut: Namkeens, Ice Cream, Cheese and Parathas to Get Cheaper From September 22
In a major relief for consumers, the Goods and Services Tax (GST) Council led by Finance Minister Nirmala Sitharaman has announced a sharp reduction in GST rates on popular food items such as namkeens, ice cream, cheese, and packaged parathas. Effective September 22, 2025, these products will now attract only 5% GST, down from the existing 12%.
The move comes as part of a broader GST restructuring, simplifying the tax regime to just two slabs — 5% and 18% — with a special 40% rate for luxury and sin goods. The government has called it a “historic Diwali gift” aimed at reducing living costs, boosting demand, and stimulating economic growth.
Namkeens and Bhujia to See Price Drop
The GST cut will directly impact packaged snacks such as namkeens, bhujia, mixtures, and chabena. On a Rs 100 packet of namkeen, the GST burden will now reduce to Rs 5 instead of Rs 12 earlier, potentially making it 6-7% cheaper.
Ice Cream to Become More Affordable
Ice cream lovers will also benefit as the GST rate is slashed from 12% to 5%. A Rs 200 tub of ice cream, which earlier carried Rs 24 tax, will now attract only Rs 10 — a saving of Rs 14.
Cheese Prices to Fall
Cheese blocks and slices are set to become cheaper too. A Rs 400 block of cheese that earlier attracted Rs 48 GST will now carry just Rs 20, leading to a Rs 28 reduction if companies pass on the benefit to customers.
Packaged Parathas to Cost Less
Frozen and ready-to-eat packaged parathas will also see a price drop. For a Rs 150 pack, GST will reduce from Rs 18 to Rs 7.5, making it Rs 10.5 cheaper.
Economic Impact
The revised GST rates are expected to give a significant boost to India’s snack foods, dairy, and frozen foods market, encouraging higher consumption. Consumers can expect visible price reductions in the coming weeks, provided companies pass on the tax benefits.
