Every industry is celebrting the GST council reforms and every day new insights are finding its way. Food and beverage businesses are seeing this as a big tax shake-up since the original rollout. Some say it can assist a better livelihood for local farmers and fishermen further. Here are some comments shared by food and beverage business leaders.
Shailesh Patel, Co-Founder, Dam Good Fish
The reduction in tax on seafood and inputs for aquaculture decided by the GST Council from 12% to 5% is a game-changer for our industry. It brings down costs all along the supply chain, allowing a company like Dam Good Fish to lower price points for consumers while increasing access to clean, sustainable protein. It helps member communities of local fishermen and local entrepreneurs while improving India’s competitiveness on the global seafood stage.
Teja Chekuri, Managing Partner of Ironhill India
India’s new GST framework, effective 22 September 2025, is being called the biggest tax shake-up since the original rollout. By merging multiple slabs into two simple rates, 5% and 18%, and creating a 40% category for luxury and sin goods, the government promises a cleaner, more streamlined system. For the food and beverage industry, especially microbreweries, the picture is mixed.
On the upside, the rationalisation is a welcome move. Everyday inputs like packaged foods, condiments, and raw materials now fall into clear tax brackets, making procurement easier and cutting down compliance headaches. For brewpub chains with multiple outlets, that’s a real relief.
The tougher part is the new 40% ‘sin slab,’ which now covers sugary and aerated drinks. This directly impacts how we price mocktails, cocktails, and even so-called healthier alternatives. Since brewpubs often build these into menu bundles or cocktail mixers, it means we’ll need to rethink pricing strategies more carefully.
And while GST reform simplifies some things, beer excise is still a state subject. That means microbreweries continue to navigate a double layer of state and national taxes, which makes long-term planning tricky.
Overall, GST 2.0 is a step in the right direction and could encourage higher consumption in the F&B sector. But for microbreweries, the key will lie in smarter menu planning, sharper storytelling around experiences, and transparent communication of value. Compliance may be simpler, but the challenge now is balancing price, perception, and customer experience.
Dheeraj Gupta, Founder & CEO, Jumboking
The recent GST rate reduction on mayonnaise, sauces, and patties is a welcome step, bringing relief to both the QSR industry and consumers. While the sector continues to hope for Input Tax Credit benefits on rent, interiors, equipment, and utilities—a move that could truly transform India’s food ecosystem—lower ingredient and supply costs (12% → 5%), simpler compliance, and more transparent billing are already helping brands operate more efficiently and delight customers.
Ranjith Mukundan, CEO and Co-Founder, Stellapps
The reduction in GST on dairy products is a welcome step that will provide meaningful relief to consumers while encouraging higher consumption across categories like paneer, ghee, cheese, and ice cream. By bringing key products such as UHT milk and paneer into the zero-tax bracket, and lowering rates on ghee and cheese to 5%, the government has made nutrition more affordable and strengthened organized trade’s role in these fast-growing categories.
For the industry, this opens up headroom to expand capacity, invest in better manufacturing practices, and streamline supply chains across both traditional and modern retail. As the world’s largest milk producer, with over 90 million smallholder farming families supporting 1.43 billion Indians, India stands to gain enormously and more milk will be absorbed into formal value chains, translating into assured procurement, better price realization for farmers, and a stronger, more resilient dairy sector. This move also aligns with the government’s broader focus on Make in India and building a globally competitive, sustainable dairy ecosystem.
Sparsh Sachar, FMCG and Business Head, Nutrica, BN Group
The GST announcements bring timely relief for both consumers and the food industry. Edible oil is a staple in every Indian household, and easing the tax burden directly helps families manage their daily expenses while supporting more consistent demand. For the industry, this creates an opportunity to expand refining and packaging capacities, strengthen supply chains, and invest in sustainable practices that raise overall quality standards.
Over time, such measures will not only stimulate domestic manufacturing but also reduce India’s dependence on imports, paving the way for greater self-sufficiency. By aligning consumer benefit with long-term industry resilience, the reform reinforces the broader vision of Make in India and the growth of a more secure and sustainable edible oil ecosystem.
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