GST rate cut 2025: Namkeens, bhujia and other pre-packaged and labelled goods to get cheaper from September 22

The 56th GST Council on Wednesday, September 3, reduced taxes on pre-packaged and labelled namkeens, bhujia, mixture, etc., to 5% from 12% earlier. The new rates will be implemented starting from September 22.

Previously, there were four slabs under GST, namely 5%, 12%, 18% and 28%. Now, under the revised GST rules, there will only be two slabs: 5% and 18%. Most items in the 12% slab have been shifted to 5%, while many items in the 28% slab now attract 18%. Further, the Council has approved the introduction of a special 40% tax slab for sin and luxury goods.

Among the goods that shifted to the 5% category are pre-packaged and labelled namkeens, bhujia, mixture, chabena and similar edible preparations ready for consumption (other than roasted gram). The demand for these items is expected to increase in the coming months on the back of the GST rejig.

Cheaper consumer goods

Many other fast-moving consumer goods (FMCG) will now be cheaper, like shampoo, hair oil, toilet soap, butter, ghee, dairy products, etc.

FMCG companies are now planning to pass these benefits to consumers. The GST reforms will provide a major breather to the middle-class, a Bank of Baroda report dated September 2 said.

Mother Dairy, a leading dairy company in India, has already announced that it will pass on the benefits of the reduction in GST on a wide range of products to consumers.

“We commend the Union Government's decision to reduce GST rates on a wider range of dairy products, including paneer, cheese, ghee, butter, UHT milk, milk-based beverages, and ice creams,” a PTI report quoted Mother Dairy MD Manish Bandlish as saying.

He added, “This is a particularly big boost for packaged categories, which are fast-growing favourites in Indian homes and will see stronger demand momentum going forward.”

Other FMCG companies are also expected to announce similar decisions, easing financial pressure on consumers and making everyday essentials more affordable.

“This is going to have a positive impact on the economy,” Finance Minister Nirmala Sitharaman had said on Wednesday while announcing the new GST rules.