Overview
- The GST Council led by Finance Minister Nirmala Sitharaman moved colas, iced teas, energy drinks and other sugary beverages into a 40% luxury and sin slab.
- Traditional sweets such as gulab jamun, kaju katli, rasgulla and halwa, along with refined sugar and sugar confectionery, will be taxed at 5%, down from 18%.
- GST 2.0 consolidates rates into 5% and 18% slabs with a separate 40% category for sin and luxury goods, with changes scheduled to take effect on September 22.
- Public-health context cited in coverage notes about 101 million people with diabetes and roughly 136 million who are pre-diabetic, alongside ICMR guidance to cap added sugar at 5% of daily calories.
- Commentary from experts describes the split as inconsistent with health goals and recommends uniform sugar taxation, front-of-pack warnings and incentives for lower-sugar reformulation.