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.
Effective after 22 Sep 2025, India’s GST schedule for FMCG rationalises slabs. Items formerly at 12% generally move to 5%, many at 28% align to 18%, and a narrow demerit/luxury set sits at a special 40% slab. Exemptions for essential unbranded basics continue.
Category | Examples | New GST Rate |
---|---|---|
Essential unbranded items | Unbranded flour, pulses, milk, curd | 0% (Exempt) |
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 | 5% or 18% |
Chocolates & cocoa products | Bars, pralines, cocoa-based confectionery | 18% |
Soft drinks (aerated/energy drinks) | Aerated beverages, energy/cola drinks | 40% (special slab) |
Note: The 12% slab is discontinued; most 12% items shift to 5%. A limited demerit list (e.g., aerated drinks) moves to the special 40% slab.
FMCG Product | New GST Rate |
---|---|
UHT / packaged milk | 0% |
Packaged curd | 5% |
Biscuits (branded) | 18% |
Soap and shampoo | 18% |
Detergent powder / liquid | 18% |
Ready-to-cook noodles | 5% |
Aerated drinks | 40% (special slab) |
Packaged paneer or cheese | 5% |
Toothpaste and deodorant | 18% |
Classify products precisely by HSN and composition; branding/packaging and aeration determine final slab within this framework.
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% |
Classify products precisely by HSN and composition; branding/packaging and aeration determine final slab within this framework.
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% |
Classify products precisely by HSN and composition; branding/packaging and aeration determine final slab within this framework.
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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