Sweet Treats to Cost Less? GST on Chocolates, Pastries & Ice Cream May Drop to 5%

New Delhi (The Uttam Hindu): The government is going to take a big step towards making GST i.e. Goods and Services Tax in the country easier and beneficial for the people. Prime Minister Narendra Modi had said in his speech from the Red Fort on August 15 that GST reform will be implemented before Diwali. Now after this, the news is coming out that the tax on many everyday food items can be reduced.

Chocolates, pastries, ice cream will become very cheap… Government can reduce GST from 18% to 5%: The Fitment Committee has suggested that the current 18% GST on cocoa chocolates, cereal flakes, pastries and ice cream should be reduced to 5%. If this proposal is passed, the prices of these items will come down considerably. This will provide great relief to customers, especially children and youth who are major buyers of these items.

At present, these things come under the 18 percent tax slab, which gives a good amount of revenue to the government. But the government is now working towards simplifying and rationalizing the GST structure. The purpose of this change is to reduce the burden on the pockets of the common man, especially for those things that are purchased every day.

This step of the government can also provide some relief from inflation. Officials believe that reducing taxes on things that are consumed a lot will benefit people and the tax system will also become more effective.

However, according to the Finance Ministry, this decision may result in a revenue loss of about Rs 40,000 crore for the central and state governments. But if the common people get relief, then the government is ready to bear this loss.

Now everyone's eyes are on the 56th meeting of the GST Council to be held on 3 and 4 September. In this meeting it will be decided whether the tax slabs will be changed or not. If approved, products like chocolates, pastries and ice cream can be available cheaper than before this Diwali.