BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
FMCG—Fast-Moving Consumer Goods—include essential items like toothpaste, soap, snacks, soft drinks, packaged foods, and detergents. These products are bought frequently and in large quantities across households in India. But what does GST mean for the FMCG industry?
In this blog, we simplify the GST for FMCG products, exploring current tax rates and the broader impact of GST on FMCG distributors and sector growth.
FMCG items fall into different GST slabs—0%, 5%, 12%, 18%, and 28%—based on their use, branding, and packaging.
| Category | Examples | GST Rate |
|---|---|---|
| Essential unbranded items | Unbranded flour, pulses, milk, curd | 0% |
| Branded daily groceries | Branded rice, wheat flour, packaged ghee | 5% |
| Toiletries and cleaning items | Toothpaste, soaps, detergents | 18% |
| Snacks & ready-to-eat foods | Namkeen, chips, biscuits, noodles | 12%–18% |
| Soft drinks, chocolates | Aerated drinks, energy drinks, candy bars | 28% |
| FMCG Product | GST Rate |
|---|---|
| Packaged milk and curd | 5% |
| Biscuits (branded) | 18% |
| Soap and shampoo | 18% |
| Detergent powder/liquid | 18% |
| Ready-to-cook noodles | 12% |
| Aerated drinks | 28% |
| Packaged paneer or cheese | 12% |
| Toothpaste and deodorant | 18% |
| Before GST | After GST |
|---|---|
| Multiple state-level taxes (VAT, CST, Octroi) | One uniform tax (GST) |
| Difficulty in claiming tax credit | Seamless Input Tax Credit (ITC) |
| High logistics costs due to entry barriers | Improved supply chain efficiency |
| Complex invoicing and billing | Simplified tax compliance |
Whether you’re a distributor, retailer, or manufacturer, understanding GST for FMCG products is key to better pricing, improved profitability, and smooth operations. The Goods and Services Tax (GST) regime has simplified taxation, brought uniformity, and made India’s vast FMCG market more accessible and organized.
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BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.