Big news for snack lovers! The GST Council has slashed taxes on your favorite crispy treats.
Namkeen and other savory snacks will now see a tax reduction from 18% to 12%. However, the FM stated that snacks made using the extrusion process would be taxed at 18 per cent. Un-fried or uncooked snack pellets will be taxed at 5 per cent.
“The GST rate of extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 to be reduced from 18 per cent to 12 per cent at par with namkeens, bhujia, mixture, chabena (pre-packaged and labelled) and similar edible preparations in ready for consumption form which are classifiable under HS 2106 90,” the Ministry of Finance notification read.
“To also clarify that the reduced GST rate of 12 per cent on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 is applicable prospectively,” the notification read.