GST on Food Items in India: What’s Taxable and What’s Not
- 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.
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.
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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 |
Food Type
GST Rate (After 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Food Type
GST Rate (After 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Food Type
GST Rate (After 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Food Type
GST Rate (After 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Food Type
GST Rate (After 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
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 |
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
Food Category
Common HSN Code
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 |
Restaurant / Catering Type
GST Rate
ITC Availability
Restaurant / Catering Type
GST Rate
ITC Availability
Restaurant / Catering Type
GST Rate
ITC Availability
Restaurant / Catering Type
GST Rate
ITC Availability
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.
