HOW REVISED GST REGIME IS STIRRING UP THE F&B INDUSTRY

For restaurateurs, cloud kitchen operators, QSR founders, and packaged food brands, the government's decision to rationalise GST slabs is not just a policy shift-it's a palate-cleansing reform.

- BY PARINA SOOD

India’s Food & Beverage industry has long thrived on a mix of flavours, formats, and fast-paced innovation.

From bustling street food stalls to high-end gourmet brands, the sector has witnessed tremendous growth in recent years. But one challenge that consistently left a sour aftertaste? The complex web of taxes under the Goods and Services Tax (GST) regime. So, is the revised GST regime going to make life easy for the industry?

WHAT'S COOKING WITH GST?

In its latest move to simplify India’s indirect tax framework, the GST Council has streamlined food and beverage items into two key slabs:

• 5% GST for essentials and mass-consumed products

• 18% GST for premium and nonessential offerings

This revision aims to replace the earlier scattered rates (5%, 12%, and 18%) that often left business owners confused and battling classification disputes. The streamlined approach promises transparency, consistency, and better compliance—all essential ingredients for sustainable growth in a high-volume industry.

SIMPLE RECIPE FOR STARTUPS

Perhaps the biggest winners in this reform are F&B startups and emerging brands. In an ecosystem where price sensitivity drives customer acquisition and scalability, having a simplified tax structure offers newfound clarity in operations and strategy. Simranjeet Singh, Director at CYK Hospitalities, who has advised several homegrown and international food chains, describes it as a breath of fresh air: