{"id":10983,"date":"2025-09-07T15:47:02","date_gmt":"2025-09-07T15:47:02","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/09\/07\/40-gst-on-sugary-drinks-but-only-5-on-mithai-a-sweet-tax-contradiction-under-gst-2-0-business-news\/"},"modified":"2025-09-07T15:47:02","modified_gmt":"2025-09-07T15:47:02","slug":"40-gst-on-sugary-drinks-but-only-5-on-mithai-a-sweet-tax-contradiction-under-gst-2-0-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/07\/40-gst-on-sugary-drinks-but-only-5-on-mithai-a-sweet-tax-contradiction-under-gst-2-0-business-news\/","title":{"rendered":"40% GST On Sugary Drinks, But Only 5% On Mithai: A Sweet Tax Contradiction Under GST 2.0 | Business News"},"content":{"rendered":"


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Last Updated:<\/span>

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%<\/h2>\n
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GST on Sugar:<\/strong> 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 \u2018Sin\u2019 and luxury goods GST slab of 40%. Interestingly, the mithai (sweets) isn\u2019t part of \u201cSin goods”.<\/span><\/p>\n

\u201cSin goods” are products considered harmful to health or society, thereby a higher tax slab of 40% on them.<\/p>\n

In fact, the government has slashed GST rates for Mithai (sweets) like <\/span>gulab<\/span> jamun, <\/span>kaju<\/span> katli<\/span>, <\/span>rasgulla<\/span>, and halwa from 18% to 5%. This marks a contradiction over the government\u2019s stance against sugar as a public menace, which needs to stop earliest.<\/span><\/p>\n

On one side, sugar-heavy drinks are treated as \u201csin goods” and taxed at a steep 40%, while\u00a0sugar-rich mithai and sweets get relief, taxed at just 5%.<\/p>\n

Keeping mithai (sweets) in 5% tax slab won\u2019t dissuade public from consumption, cancelling out the government\u2019s efforts to reduce it.<\/p>\n

Along with that, refined sugar, sugar cubes, and sugar confectionery now attract only 5% GST, down from 18% earlier.<\/p>\n

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.<\/p>\n

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 \u201chistoric Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.<\/p>\n

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Varun Yadav<\/a><\/p>\n

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<\/span><\/p>\n<\/div>\n<\/div>\n

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<\/span><\/p>\n<\/div>\n<\/div>\n

First Published:<\/span><\/p>\n
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September 05, 2025, 11:25 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> 40% GST On Sugary Drinks, But Only 5% On Mithai: A Sweet Tax Contradiction Under GST 2.0<\/span><\/div>\n
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Last Updated:September 05, 2025, 11:25 IST 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…<\/p>\n","protected":false},"author":1,"featured_media":10984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-10983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=10983"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/10984"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=10983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=10983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=10983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}