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GST Council led by Nirmala Sitharaman raised GST on cold drinks and energy beverages to 40%, but cut GST on mithai like gulab jamun and kaju katli to 5%
News18
GST on Sugar: The GST Council, led by Finance Minister Nirmala Sitharaman, in a major GST 2.0 overhaul, brought cold drinks, iced teas, energy beverages, and other sugary beverages under the special ‘Sin’ and luxury goods GST slab of 40%. Interestingly, the mithai (sweets) isn’t part of “Sin goods”.
“Sin goods” are products considered harmful to health or society, thereby a higher tax slab of 40% on them.
In fact, the government has slashed GST rates for Mithai (sweets) like gulab jamun, kaju katli, rasgulla, and halwa from 18% to 5%. This marks a contradiction over the government’s stance against sugar as a public menace, which needs to stop earliest.
On one side, sugar-heavy drinks are treated as “sin goods” and taxed at a steep 40%, while sugar-rich mithai and sweets get relief, taxed at just 5%.
Keeping mithai (sweets) in 5% tax slab won’t dissuade public from consumption, cancelling out the government’s efforts to reduce it.
Along with that, refined sugar, sugar cubes, and sugar confectionery now attract only 5% GST, down from 18% earlier.
The World Health Organization (WHO) recommends that adults and children reduce their daily intake of free sugars to less than 10% of their total energy intake. For additional health benefits, WHO suggests further reducing free sugars to below 5% of total energy intake.
In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 05, 2025, 11:25 IST
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