Licious extends full GST rate cut benefits on packaged food products

Licious claims that the GST passthrough makes its ready-to-eat and ready-to-cook foods 45-50% more affordable than dining out.

Delightful Gourmet Pvt. Ltd. has passed on full benefits of GST rate cut on packaged food products sold under its Licious brand.

Analysts who track India’s F&B segment expect the GST rate cut to boost adoption of packaged foods due to a lower entry price. (Representative Image)

With effect from 22 September, the GST rate on ready-to-cook and ready-to-eat categories has been reduced to 5% from 12%, in line with the government’s rationalisation move for essential items, according to a statement on Monday. That, Licious claims, makes its packaged foods 45-50% more affordable than dining out.

“The GST rate cut is more than a tax adjustment—it is a structural tailwind for the formalisation and adoption of packaged foods,” Licious co-founders Abhay Hanjura and Vivek Gupta said in the statement. “By passing on the benefits in full, Licious is reinforcing transparency and enabling wider consumer access to fresh, branded food.”

On 4 September 2025, the government reduced GST rates on hundreds of items—from soaps to small cars—as part of a rationalisation move that reduced the number of tax slabs to two from four earlier. Most essential items, including packaged foods, are in the 5% category while discretionary goods attract 18% tax. An additional 40% slab has been introduced for so-called sin goods, while the compensation cess mechanism has been done away with altogether.