GST on namkeens, extruded savoury products cut to 12%

The GST Council, in its 54th meeting chaired by Finance Minister Nirmala Sitharaman, decided to reduce the GST rate on namkeens and extruded or expanded savoury food products from 18% to 12%. This change applies to products like namkeens, bhujia, mixtures, and similar ready-to-eat items classified under HS 2106 90. Extruded or expanded savoury products (excluding unfried or uncooked snack pellets) falling under HS 1905 90 30 will now also be taxed at 12%.

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The GST Council has announced to reduce the tax rate on namkeens and extruded/expanded savoury food products from 18% to 12%. The decision was made at the council’s 54th meeting, chaired by Finance Minister Nirmala Sitharaman.

The GST rate on extruded or expanded products, savoury or salted (other than unfried or uncooked snack pellets, by whatever name called, manufactured through the process of extrusion), falling under HS 1905 90 30 will be reduced from 18% to 12%, on par with namkeens, bhujia, mixture, chabena (pre-packaged and labelled), and similar edible preparations in ready-to-eat form, which are classifiable under HS 2106 90.

According to the council’s statement, the 5% GST rate will continue to apply to unfried or uncooked snack pellets, whatever they are named, created using the extrusion process.

The GST Council further emphasised that the 12% GST rate on extruded or expanded items, savoury or salty, is effective prospectively.