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Today Date : Saturday, September 06, 2025

Bun, Cream Bun issue:  victory for food sector

Bun, Cream Bun issue: victory for food sector

The new changes from the GST Council meeting headed by Union Finance Minister Nirmala Sitharaman are set to provide major relief to people in the food sector.
Union Finance Minister Nirmala Sitharaman held a consultation with industry bodies and industry trade associations at the Codissia campus in Coimbatore in September last year.
Srinivasan, the owner of Annapoorna Hotel, a symbol of Coimbatore, participated in this and said, "Restaurants have different GST tax systems for food items, sweets and savoury items. Due to this, when we give the bill to the families who come to our hotel and eat, they fight over why we charge different taxes for each item. When we give the bill, the computer itself is struggling, madam, there is one GST for sweets and one GST for savoury items, it cannot cope," and his realistic statement went viral on social media.
This issue has become a matter of controversy and discussion across the country. The solution to this has now been found. In the recently concluded GST meeting, items like Cream Buns, which were previously taxed at 18 percent, have been changed. Accordingly, the pastries category has been reduced to 5 percent tax, thus Cream, Buns and Cream Buns are limited to a single 5 percent tax rate.
As part of the GST reforms, the tax on snacks has been reduced from 18 to 5 percent. Similarly, drinking water and aerated water without added sugar or sweeteners have been reduced from 18 to 5 percent. The tax on popcorn has also been reduced to 2 categories.
This has brought great relief to the food industry, especially as it is seen as a major victory for the request of Srinivasan, owner of the Annapurna Hotel in Coimbatore.
The current GST tax changes with various solutions have brought great relief to restaurants. Customers will also get food items at lower prices.
Thank you to Prime Minister Modi and Finance Minister Nirmala Sitharaman for this decision, even though it was a late one! Thank you!