Chapati vs Pizza: How Will GST Rate Cuts Affect Your Fast Food Cravings?
The GST reform has reduced rates for pizza, pasta, chapati and even parathas, which could significantly reduce the bills from fast-food outlets.
The sweeping changes to GST rates introduced by the GST Council is set to take effect from September 22 and is expected to significantly reduce your bill, next time you go to your favourite cafe or restaurant.
This is because GST 2.0 takes great effort in reducing the rate for most fast food items, including chapati, pasta and even pizza. The move is part of the government's larger effort to boost consumption, especially considering how quick service restaurants have struggled with slow urban demand in recent times.
Which Fast-Food Gets Cheaper In GST 2.0?
As mentioned earlier, the GST reform has reduced rates for pizza, pasta, chapati and even paratha. From Sept 22, there will be no GST charged on chapatis, parathas and pizza breads, which could significantly reduce the bills on fast-food outlets such as Domino's and Pizza Hut. In fact, all Indian breads will be exempted from GST. This compares to an earlier GST of 5%.
Pasta, meanwhile, will now be charged only 5% GST compared to 12% earlier. The same stands for pastry, cakes, biscuits and other bakers’ wares, as well as chocolate items, which could possibly bring down your bill next time you go to a cafe.
GST on packaged foods such as instant noodles, bhujia, and namkeens also get cheaper and will attract a rate of 5% vs 18% or 12% earlier.
Food bills may come down even when you go for breakfast, as rates on sausages, mushrooms and jams and jellies have come down and will now attract a GST of just 5% vs 12% earlier. Talk about enjoying a delicious English breakfast platter.
On the flip side, though, all carbonated and caffeinated beverages will now attract 40% GST, which will directly impact prices of Coca Cola, Red Bull, Thumbs Up, Monster Energy, and similar drinks.
