GST on Honey: Rate, Applicability & Industry Outlook
Honey is one of the most popular natural food products in India, widely consumed for its taste, health benefits, and use in traditional medicine. But if you’re a beekeeper, trader, or manufacturer, it’s important to understand the GST on honey. Whether you’re buying or selling honey, packaged or loose, GST impacts how the product is taxed and sold. In this blog, we break down GST rates, HSN codes, input credit rules, and what it means for the honey industry in India.
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Is GST Applicable on Honey in India?
Yes, GST is applicable on honey. However, the rate depends on whether the honey is:
- Branded and packaged
- Loose and unbranded
Unbranded or loose honey has been given tax relief, but packaged honey falls under a standard GST rate. Learn more about GST on food products for similar items.
GST Rate on Honey
| Type of Honey | Packaging & Labeling | GST Rate |
|---|---|---|
| Unbranded & Loose Honey | Not packaged or labeled | 0% |
| Branded & Packaged Honey | Pre-packaged and labeled | 5% |
For more on packaging implications, read about GST on packaged food.
HSN Code for Honey
| Product | HSN Code | GST Rate |
|---|---|---|
| Natural Honey | 0409 | 0% or 5% |
Make sure to refer the correct HSN code when filing GST returns.
Input Tax Credit (ITC) for Honey Businesses
Businesses involved in the packaging, marketing, or distribution of honey can claim Input Tax Credit (ITC) on GST paid for:
- Packaging materials (jars, cartons)
- Label printing and design
- Transport and logistics
- Processing equipment
Learn what expenses can be claimed as ITC for better tax management.
Conclusion
The GST on honey is simple but significant. While unbranded and loose honey is GST-free, branded and packaged honey carries a 5% tax rate. Understanding these differences helps local sellers, retailers, and large FMCG brands make better business decisions. For consumers, knowing the tax breakdown ensures transparency in pricing. As the industry evolves, staying GST-compliant will continue to be a key success factor for those in the honey trade. Learn how GST affects agriculture and related sectors.
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions (FAQs)
- What is the GST on honey in India?Unbranded honey is exempt (0%), while packaged and labeled honey is taxed at 5% GST.
- What is the HSN code for honey?The HSN code is 0409 for natural honey.
- Can local beekeepers avoid GST registration?Yes, if their turnover is below ₹40 lakh and they sell unbranded honey.
- Can ITC be claimed on honey business expenses?Yes, if the business sells taxable (packaged) honey.
- What is the GST for honey sold on e-commerce platforms?Branded honey sold online is taxed at 5%, and sellers must be GST-registered.
