GST reforms will leave a wonderful aftertaste

n his Independence Day address, Prime Minister Narendra Modi committed to next-generation Goods and Services Tax (GST) reforms by Diwalis.

- Chirag Paswan

From September 22, that promise will show up in grocery bills nationwide. This is the essence of these changes: It's a relief you can taste.

The reforms build on continuity. GST created a single national market and revenue stability. With that foundation in place, the simplified rate structure centres on two slabs — the 5% and 18% ones. Ultra-pasteurised milk, packaged paneer and all common Indian breads are at 0% GST. Most processed foods, including biscuits, namkeens, breakfast cereals, and coffee, are at 5%. Key packaging, such as cartons and moulded paper trays, is also at 5%. The intent is to keep food affordable, provide clearer classification and rate certainty, and allow industries to focus on scale and quality. Crucially, these changes arrive as India’s food sector enters a historic expansion, driven by rising incomes, urbanisation and a young, healthand convenience-seeking population.

For households, the payoff is immediate. A wide basket at 0% or 5% lowers monthly spend without asking families to compromise on hygiene or nutrition. Lower indirect tax on everyday foods leaves more disposable income each month where it matters most—the recurring grocery basket. As competition adjusts prices, consumers can expect more choice in fortified, ready-to-cook and ready-to-eat options that fit modern routines.