Sweet Relief This Diwali: Government Plans GST Cut on Chocolates, Pastries, and Ice Cream from 18% to 5%
New Delhi(The Uttam Hindu): The Indian government is preparing to take a big step towards making GST (Goods and Services Tax) simpler and more consumer-friendly. Prime Minister Narendra Modi, in his Independence Day address from the Red Fort, had announced that a major GST reform would be rolled out before Diwali.
Now reports suggest that the government is considering reducing GST on several everyday food items. The Fitment Committee has recommended slashing GST on chocolates, cereals-based flakes, pastries, and ice cream from the current 18% to just 5%.
If approved, this move could bring significant relief to consumers, especially children and young people, who are among the biggest buyers of these products. Currently placed under the 18% slab, these items contribute heavily to government revenue. However, the government is now focusing on making the GST framework simpler, rational, and less burdensome for the common man.
Officials believe that lowering taxes on high-consumption products will not only reduce inflationary pressure but also make the tax system more effective. However, this decision could cost the Centre and States nearly ₹40,000 crore in revenue. Despite this, sources indicate the government is willing to absorb the loss in exchange for consumer relief.
All eyes are now on the 56th GST Council meeting scheduled for September 3-4, where the final decision on changing the tax slabs will be made. If approved, chocolates, pastries, and ice cream could become much cheaper this Diwali.