Overview

• The GST overhaul consolidates rates into 5% and 18% with a special 40% luxury and sin category, taking effect on September 22, 2025.
• Cold drinks, iced teas and energy beverages move into the 40% bracket under the new regime.
• Traditional sweets such as gulab jamun, kaju katli and rasgulla will be taxed at 5%, and refined sugar, sugar cubes and sugar confectionery also shift to 5%.
• Doctors and public-health specialists welcome the higher levy on sugary beverages as a nudge to reduce consumption and lifestyle disease burden, while urging labels, advertising curbs and affordable healthier alternatives.
• Commentators question the split as culturally driven and inconsistent with health goals in a country with roughly 101 million people with diabetes and about 136 million who are pre-diabetic.