The recent GST rationalisation is being hailed as a positive move across the food & beverage, hospitality, and FMCG sectors, promising easier operations, reduced compliance costs, and growth opportunities.

Mr. Simranjeet Singh, Director, CYK Hospitalities, said, “The GST rationalisation represents an uplifting change for startups and emerging F&B brands, making operations simpler. Previously, multiple tax slabs made it difficult for young entrepreneurs to set transparent pricing, stay compliant, and remain competitive with cost-conscious consumers. Now, with just two slabs—5% for essentials and 18% for other products—startups can clearly plan product mix and expansion. Lower-slab products encourage demand for QSRs, cloud kitchens, and packaged foods, while premium offerings remain on the higher slab. The reform empowers the ecosystem with creativity, credibility, and new growth avenues for both emerging and established players”.

Mr. Sanjay Jain, Director, ElanPro, added, “GST rationalisation is a welcome step that will boost consumption and investment across sectors. In hospitality, room tariffs below Rs. 1,000 are now tax-free, mid-range hotels at Rs. 1,001–7,500 are taxed at 5%, and even premium hotels above Rs. 7,500 have dropped from 28% to 18%. This is likely to drive higher occupancy and create demand for kitchen upgrades and modern refrigeration. Restaurants and catering operations also benefit, with GST reduced to 5% for non-AC outlets under Rs. 50 lakh turnover, air-conditioned restaurants, and outdoor catering services. Lower costs allow operators to invest in food safety, storage, and quality”.

He further noted that FMCG and dairy companies will gain from relief on essentials like UHT milk, paneer, and cheese, enabling stronger cold storage and refrigerated logistics. Additionally, renewable energy devices now taxed at 5% make solar-powered cold storage more viable. Jain observed that while some effects may be indirect or medium-term, these reforms are a strong catalyst for India’s commercial refrigeration industry, supporting faster and broader cold chain adoption.

The consensus among industry leaders is clear, GST rationalisation not only simplifies compliance but also strengthens India’s F&B, hospitality, and FMCG ecosystem, fostering innovation, investment, and sustainable growth.