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Home National & International

GST Rate Changes: Food and Essentials to Get Cheaper, Pan Masala and Cold Drinks to Cost More

Lagatar News by Lagatar News
September 3, 2025
in National & International
GST Rate Changes: Food and Essentials to Get Cheaper, Pan Masala and Cold Drinks to Cost More
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Lagatar24 Desk

Major changes in GST rates are set to impact daily life as the GST Council, in its 56th meeting, is expected to revise rates on nearly 400 items. The move is likely to make food items, books, textiles, and electronics cheaper, while pan masala and cold drinks will get costlier. States, however, have raised concerns over potential revenue losses and demanded compensation.

Relief on Daily Essentials and Agriculture

As per the proposals, GST rates on several food and essential items could be reduced. Dry fruits, ice cream, namkeen, bhujia, and packaged water may see their GST rates slashed from 12–18% to just 5%. Paneer, currently taxed at 5%, could even become tax-free. Soap, shampoo, and toothpaste are also expected to get cheaper. Agriculture-related equipment is likely to face lower tax slabs, offering some relief to farmers.

Autos, Electronics, and Construction Materials

Automobiles, including cars and motorcycles, may become more affordable if the proposed GST cuts are approved. Electronics such as TVs, refrigerators, and computers could also see price reductions. Similarly, cement may get cheaper, easing the cost burden for those constructing homes.

Luxury and Sin Goods to Get Costlier

On the other hand, GST on pan masala and cold drinks is likely to increase steeply—from 28% to 40%. This means consumers will have to spend more to enjoy these products.

Proposed GST Rate Changes at a Glance

  • Namkeen, Bhujia: 12% → 5%

  • Ice Cream: 18% → 5%

  • Dry Fruits: 12% → 5%

  • Cheese: 12% → 5%

  • Paneer: 5% → 0%

  • Pan Masala: 28% → 40%

  • Cold Drinks: 28% → 40%

  • Health & Life Insurance: 18% → 0%

The official notification will be issued after the council’s decision, following which new rates will directly impact markets and consumer prices.

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