Sugar and Derivatives Face GST Rate Hike
08-Sep-2025 12:28 PM
New Delhi. Many important proposals were put forward in the 56th meeting of the GST Council held in Delhi last week. Under this, the maximum change in GST rate was recommended especially for different varieties and categories of sugar and the products made using it. The decision of tax reduction is going to be implemented from 22 September, which will provide relief to the common people.
Under the new amendment, the tax slab of 12 and 28 percent has been abolished and only 5 and 18 percent slab has been retained, while a new slab of 40 percent has been created for harmful products and luxury items. Aerated waters, which contain sugar or the flavour of other sweet items, have been included in the 40 percent tax slab.
On the other hand, the tax rate on sugar and most other products made from it has been reduced. Under this, the rate of duty on refined sugar, sugar cubes, sugar boiled confectionery has been reduced from 12 percent to 5 percent. This does not include those products on which earlier 5% or zero% tax was applicable.
Similarly, tax rate on chemically purified factose, maltose, glucose and fructose (which are in solid form), sugar without added flavour or colouring ingredients, syrup, artificial honey,
whether natural honey is mixed with it or not), caramel and sugar confectionery has been reduced from 18% to 5%. Besides this, tax on jam, fruit jelly, marmalade, puri with dry fruits, paste, etc. has been reduced from 12% to 5%.
Tax rate on aerated waters, caffeinated beverages, carbonated beverages of fruit drinks or carbonated beverages mixed with fruit juice has been increased from 28% to 40%. Mixed, batasha, bura,.
Tax on other sugar confectionery items has been reduced from 18 per cent to 5 per cent except sugar, whole sugar, harda, sugar beet, guts, kuliya, cardamom seeds, lukumdana and chikkis such as puff rice chikki,
groundnut chikki, sesame chikki, sesame patti, sesame rewadi, sugar makhana, sweets made from peanuts and gajak and sweets made by boiling sugar.