---
title: "New GST for Food 2026: 0% to 18% Rate on Food Items, Products"
description: "New GST rate on food in 2026 is 0% to 18% on packaged food, fresh produce and food services. Busy helps you apply the right GST rate on every invoice."
canonical: "https://busy.in/gst-rates/food/"
author: "Vineet Goyal"
published: "2025-04-22T11:05:30.000Z"
category: "GST Rates"
---

-   Unpackaged staples such as wheat and rice are generally exempt, while pre-packaged and labelled variants may attract GST depending on the item.
-   The applicable **food GST rate** depends on the product category, packaging status, and HSN classification.
-   UHT milk, pre-packaged and labelled paneer, and Indian breads such as roti, chapati, paratha and parotta attract **Nil GST** under the applicable GST provisions.
-   Many packaged and processed food items, including namkeen, pasta, instant noodles, chocolates, coffee, butter and ghee, attract **5% GST** based on their applicable classification.
-   Restaurant services generally attract **5% GST without ITC**, while services supplied at specified premises may attract **18% GST** as per applicable GST provisions.
-   Outdoor catering services attract GST based on the applicable classification and conditions of supply.
-   Fresh fruits and vegetables generally remain exempt from GST.

# GST on Food Items in India: What’s Taxable and What’s Not

Food taxation under GST depends on packaging, branding, processing level, and service type. Let’s break it down in detail and understand the **food gst rate.**

## **New GST Rates on Food Items**

The Government of India revised GST rates on several food products effective from **22 September 2025.** The applicable **GST on food** depends on the product classification, packaging status, and HSN code.

## **GST on Food Items**

| Food Type | GST Rate (After 22 Sep 2025) | GST Rate (Before 22 Sep 2025) |
| --- | --- | --- |
| Unpackaged staples such as wheat and rice | Nil, where applicable | Nil, where applicable |
| Pre-packaged and labelled food grains and flour products | 5%, where applicable | 5%, where applicable |
| Packaged and processed food products such as namkeen, pasta, instant noodles, chocolates, coffee, butter and ghee | 5%, based on applicable classification | 12% or 18%, depending on product classification |
| Restaurant services, including takeaway | 5% without ITC | 5% without ITC |
| Chocolate and cocoa-based food preparations | 5%, based on applicable classification | 12% or 18%, depending on product classification |

**Note:** Certain food products may have different **food GST** treatment depending on their exact HSN classification, packaging status, and product description.

## HSN Codes for Common Food Categories Under GST

HSN (Harmonized System of Nomenclature) codes help classify food items under GST.

| Food Category | Common HSN Code |
| --- | --- |
| Rice, Wheat, Pulses | 1006, 1001, 0713 |
| Flour, Besan, Maida | 1101, 1106 |
| Dairy (Milk, Curd, Paneer) | 0401, 0403, 0406 |
| Butter and Ghee; Cheese | 0405, 0406 |
| Prepared or Preserved Fish | 1604 |
| Other Ready-to-Eat/Food Preparations | 2106 |
| Sugar Confectionery, Sweetmeats & Bakery Items | 1704, 2106 90, 1905 |
| Indian Breads | 1905 or 2106 |
| Chocolates & Cocoa Products | 1806 |

Loose, non-packaged staples are generally exempt from GST, while pre-packaged and labelled items may attract GST depending on the specific product and classification.

## **Packaged vs Unpackaged Food: Key GST Differences**

For specified staple food items such as wheat, rice, and flour, GST treatment depends on the product classification and whether the goods are supplied in pre-packaged and labelled form.

Understanding **gst on food items** requires checking the product classification, packaging status, and applicable GST conditions.

-   **Unpackaged staples:** May be exempt from GST depending on the product classification and applicable GST provisions.
-   **Pre-packaged and labelled staples:** May attract GST depending on the specific food product and applicable classification.

### **Example:**

-   Loose atta: Nil GST, where applicable under GST provisions.
-   Pre-packaged and labelled atta: GST rate depends on applicable classification and conditions.

The GST rate should be determined based on the specific food product, HSN classification, and applicable pre-packaged and labelled conditions.

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## GST on Restaurant and Catering Services

Restaurant and catering services are taxed based on the nature and place of supply.

| Restaurant / Catering Type | GST Rate | ITC Availability |
| --- | --- | --- |
| Standalone restaurants, including AC and non-AC | **5%** | Not Available |
| Takeaway / restaurant food delivery | **5%** | Not Available |
| Outdoor catering outside specified premises | **5%** | Not Available |
| Restaurant or outdoor catering at specified premises | **18%** | Available |

For restaurant food ordered through notified food delivery platforms, GST at 5% generally applies to the restaurant service. Separately charged delivery or other services may have their own GST treatment.

## **GST on Bakery, Sweets, and Confectionery Items**

GST on bakery, sweets, and confectionery items depends on the product classification and applicable HSN code. The applicable **food gst rate** varies depending on the type of bakery product, ingredients, packaging status, and HSN classification.

-   **Indian breads such as roti, chapati, paratha, and parotta:** Nil GST under applicable GST provisions.
-   **Cakes, muffins, and bakery products:** GST rate depends on the specific product classification and applicable GST provisions.
-   **Biscuits:** GST rate depends on the applicable HSN classification and product description.
-   **Chocolates and cocoa-based confectionery:** 5% GST based on applicable classification.

Sweets sold by sweet shops generally attract GST when supplied as goods. If supplied as part of a restaurant service, the applicable restaurant GST rate generally applies at 5% without ITC, while specified-premises cases may attract 18% GST.

## **How to Calculate GST on Food Items**

Understanding **food gst rate** calculation helps both consumers and businesses determine the applicable GST amount based on the product or service classification.

### **GST Calculation**

GST Amount = (Product Price × GST Rate) ÷ 100

Final Price = Product Price + GST Amount

### **Example 1: Packaged Food Item (5% GST)**

Product Price = ₹100
GST = (100 × 5) ÷ 100 = ₹5
Final Price = ₹105

Note: The applicable GST rate for packaged food items depends on the product category and HSN classification.

### **Example 2: Restaurant Bill (5% GST)**

Food Bill = ₹1,000
GST = (1,000 × 5) ÷ 100 = ₹50
Total Bill = ₹1,050

### **Example 3: Outdoor Catering (5% GST)**

Catering Service = ₹50,000
GST = (50,000 × 5) ÷ 100 = ₹2,500
Total Amount = ₹52,500

Outdoor catering generally attracts 5% GST without ITC. Catering at specified premises may attract 18% GST with ITC.

## **Why GST Compliance Matters for Food Businesses**

Food businesses must ensure:

-   Correct HSN code classification
-   Accurate GST billing
-   Proper stock and expiry tracking
-   Timely GST return filing

Using accounting software designed for the food industry helps avoid compliance errors and improves operational efficiency.

## **Conclusion**

GST on food items in India balances affordability and structured taxation. Essentials remain exempt, while processed and luxury items fall into higher slabs. Whether purchasing groceries or dining out, understanding GST rates ensures transparency in pricing.

For businesses, proper GST classification, billing, and compliance are essential for smooth operations.

## About the author

**Vineet Goyal**

I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.

## Frequently asked questions

### Are fruits and vegetables taxed under GST?

No. Fresh fruits and vegetables are exempt from GST.

### What is the GST on milk?

Dairy milk, including UHT milk, is exempt from GST. Milk-based or flavoured beverages generally attract 5% GST, depending on their classification.

### Is GST charged when I buy groceries online?

GST on groceries bought online is the same as for offline purchases. Depending on the product, groceries may be exempt or attract 5% or 18% GST. Unpackaged staples such as rice, wheat and pulses are generally exempt, while pre-packaged and labelled variants may attract GST.

### Do food delivery apps charge GST?

Yes. Restaurant food ordered through notified food delivery platforms generally attracts 5% GST without ITC. Separately charged platform, delivery, or other services may have separate GST treatment depending on the nature of the service.

### What GST rate applies to sweets bought from a sweet shop?

Generally 5%. If sold as part of restaurant dining or catering services, GST may apply as per restaurant or catering rates.

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