BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Rice is a staple food in nearly every Indian household. Whether it’s plain white rice, basmati rice, or parboiled rice, this essential grain plays a major role in everyday consumption. But when it comes to GST, not all rice is taxed the same.
In this article, we explain the gst for rice, how it varies between unpacked vs branded products, and what buyers and sellers need to keep in mind.
Yes and No.
Rice can be tax-exempt or taxable, depending on packaging and branding.
Under GST rules:
So, the gst on rice is 0% or 5%, depending on how it’s sold.
Get a Free Trial – Best Accounting Software For Small Business
| Type of Rice Product | GST Rate | Remarks |
|---|---|---|
| Unbranded and unpacked rice | 0% | Sold loose in local markets or wholesale |
| Branded & pre-packaged rice | 5% | Labeled, sealed packs sold by FMCG brands |
| Basmati rice (unbranded) | 0% | Exempt if sold loose or unlabeled |
| Branded basmati rice | 5% | GST applies if packed and carrying a label |
So, the rice gst rate is determined not by the type of rice, but by its packaging and brand status.
Get a Free Demo of – Best FMCG Accounting Software
Basmati rice, being a premium variety, is often sold in branded and packaged form. Here’s how GST applies:
| Form of Basmati Rice | GST Rate |
|---|---|
| Loose, unbranded basmati rice | 0% |
| Branded, pre-packaged basmati rice | 5% |
So, the basmati rice gst rate is 5% if it’s pre-packaged and labeled, even if sold by small or medium businesses.
Get a Free Trial – Best GST Accounting Software For Small Business
According to GST law:
A pre-packaged and labeled product is one that is sealed in a unit container, intended for retail sale, and requires labeling under the Legal Metrology Act.
This means:
Explore a Free Demo of – Best Inventory Management Software For Small Busines
| Trader Type | GST Requirement |
|---|---|
| Wholesale traders (unpacked rice) | GST-exempt if selling loose rice |
| Retailers selling branded rice | Must charge 5% GST |
| Online sellers (Amazon/Flipkart) | Must collect GST on packaged rice |
| Exporters of rice | Exported rice is zero-rated |
So, for compliance, rice sellers need to clearly classify packaging and branding before applying GST.
Understanding the gst on rice is essential for farmers, wholesalers, retailers, and consumers alike. Whether you’re buying a premium basmati rice pack or selling bulk rice in local markets, applying the correct GST rate keeps you compliant and your pricing transparent
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.