Your Snack Basket Just Got a Tax Talk: Decoding the Latest GST Shake-Up on Namkeens, Ice Cream & More!

Get ready to take a closer look at your shopping cart! From September 22, 2022, your beloved namkeens, ice cream, and even cheese parathas could see adjustments in their pricing due to crucial GST rate revisions. These changes, stemming from the GST Council's recommendations, aim to clarify and standardize taxation, particularly for products sold through e-commerce platforms.

One of the most significant recommendations zeroes in on our favorite savory snacks.

Items like 'namkeens/bhujia/mixtures/chanachur/dalmoth/sath/gathiya/matri/chiwda/chevda/farsan/bhusu/potato chips/potato wafers and other similar edible preparations' are now slated for a 5% GST rate. This applies specifically when these delicious treats are supplied in a 'pre-packaged and labelled' form.

The clarification on 'pre-packaged and labelled' is vital, referring to specified pre-packaged commodities as defined under the Legal Metrology Act, 2009. So, if your packet of chips or bhujia meets these criteria, expect the 5% GST to apply.

But the changes don't stop there. Indulging in a scoop of ice cream from your favorite parlour might also come with a revised bill.

The GST Council has clarified that 'ice cream parlours or similar establishments' will now levy an 18% GST on the ice cream they serve. This is a crucial distinction, as previously, there might have been ambiguities in the taxation of ice cream sold by parlours versus pre-packaged ice cream sold in stores.

Another interesting item under review is the cheese paratha.

While specific details on its rate adjustment for all scenarios might require further clarification, the overarching theme is a move towards a clearer and more consistent tax structure. The aim is to iron out any ambiguities that businesses, especially those operating online, might have faced regarding the application of GST.

These adjustments are part of a broader effort by the GST Council to streamline the tax framework, ensuring a uniform approach across various products and supply chains.

For consumers, this means a more predictable pricing structure, especially when purchasing goods through e-commerce. While the immediate impact might feel like a minor change on individual items, collectively, these revisions reflect a significant step towards greater transparency and efficiency in India's indirect tax system.

So, the next time you reach for a packet of namkeens or treat yourself to an ice cream, remember that these behind-the-scenes GST revisions are playing a role in the final price you pay.

Stay informed, and happy snacking!