The GST Council has announced a reduction in the tax rate on namkeens and certain savoury snacks from 18% to 12%. This decision was made during the 54th meeting of the council, chaired by Finance Minister Nirmala Sitharaman.
The reduced rate applies to extruded or expanded savoury products like salted snacks that are ready for consumption. The council’s statement specified that these products, classified under HS code 1905 90 30, will now be taxed at the same rate as other popular snacks like namkeens, bhujia, mixtures, and chabena. These snacks, which are pre-packaged and labelled, will all be subject to the new 12% GST rate.
However, the GST rate of 5% will continue to apply to unfried or uncooked snack pellets that are made through the extrusion process. The council also clarified that the reduced 12% GST rate on extruded or expanded savoury products will be applicable going forward.