Butter, Ghee, Chocolates, Cold Drinks: What Got Cheaper & Costlier After GST Rate Revision

The latest GST rate revision has been announced, and it has made Indians quite happy! It will provide relief to the fast-moving consumer goods (FMCG) sector, and is set to impact your everyday shopping basket. From paneer and chocolates to coffee and cold drinks, several FMCG items are either getting cheaper or becoming costlier after Finance Minister Nirmala Sitharaman’s announcement during the 56th GST Council meeting. Scroll on to know all about it.

GST Revision To Boost Demand Ahead Of Festive Season

During its 56th meeting on Wednesday, the GST Council announced sweeping Goods and Services Tax (GST) rate cuts on several FMCG items. According to The Economic Times, the new GST revision has brought most goods and services under two main tax slabs- 5% and 18%. The GST Council also put some items in the ‘sin tax’ slab, where a massive 40% tax will be levied. These changes will take effect on September 22, 2025.

“These reforms have a multi-sectoral and multi-thematic focus, aimed at ensuring ease of living for all citizens and ease of doing business for all,” the Finance Minister said about the new changes.

Also Read: 5 Reasons To Add Ghee To Your Morning Coffee & Make It ‘Bulletproof’

What Will Be Cheaper & Costlier

Hon’ble Prime Minister Shri @narendramodi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort.

Working on the same principle, the GST Council has approved significant reforms today.

These reforms have a multi-sectoral and… pic.twitter.com/NzvvVScKCF

— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025

As per Nirmala Sitharaman’s X (formerly Twitter) post, here’s how the revised GST rates will impact the prices of food and daily essentials –

What will be cheaper –

1. Essential items will be tax-free.
2. Milk products like Ultra-high temperature (UHT) milk, chapati and paratha will become tax-free, from the current 5%.
3. Products like condensed milk, butter, ghee, paneer, cheese, namkeen, bhujiya, sauces, instant noodles, and coffee have now been placed in the 5% slab.
4. Malt, starches, pasta, cornflakes, biscuits, chocolates and cocoa products have also been moved to the 5% GST slab.
5. Dry fruits and nuts like almonds, pistachios, hazelnuts, cashews, and dates have been moved from 12% to just 5% now.
6. Sausages, meat preparations, and fish products are also placed in the 5% slab.
7. Waters (both natural or artificial mineral waters) and aerated waters (not containing added sugar or other sweetening matter) have been moved from 18% to 5%.

What will be costlier –

1. All goods containing added sugar (or other sweetening matter or flavouring), including aerated waters, have been revised from 28% to 40%.
2. All caffeinated beverages and carbonated beverages will also be placed in the 40% slab rate.
3. Cigarettes and premium liquor have also been placed in the 40% GST slab.

Also Read: From Fat To Fabulous: Nutritionist Debunks 5 Ghee Myths; Add It To Your Modern, Healthy Diet

We hope this information is useful to you all!

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