New GST on Rice: Unpacked vs Branded Categories
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.
Is Rice Taxable Under GST?
Yes and No.
Rice can be tax-exempt or taxable, depending on packaging and branding.
Under GST rules:
- Unbranded and unpacked rice is exempt from GST
- Branded and pre-packaged rice attracts 5% GST
So, the gst on rice is 0% or 5%, depending on how it’s sold.
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GST Rate on Rice: Quick Overview
New GST Rate on Rice in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for rice (no compensation cess).
| Type of Rice Product | New 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 |
Old GST Rate on Rice in India
(Old GST Rates – Applicable Until 21st September)
| 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.
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GST on Basmati Rice
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.
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Definition of Pre-Packaged and Labeled Goods
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:
- A branded rice pack of 5 kg sold in a supermarket attracts 5% GST
- Loose rice sold in gunny bags or directly scooped from sacks is exempt
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GST Compliance for Rice Traders
| 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.
Conclusion
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
As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.
Frequently Asked Questions
-
What is the gst for rice in India?
- 0% GST for unpacked, unbranded rice
- 5% GST for branded and pre-packaged rice
-
Is basmati rice exempt from GST?Only if it's sold loose and unbranded. Otherwise, 5% GST applies.
-
Does selling rice online attract GST?Yes. All pre-packaged and labeled rice sold online is subject to 5% GST.
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What about GST on rice exports?Rice exports are zero-rated under GST, and exporters can claim refunds on input taxes.
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Are small kirana stores selling loose rice required to register under GST?Not necessarily. If they sell only unbranded, unpacked rice, and their turnover is below ₹40 lakh, GST registration is not mandatory.