--- title: "New GST for Rice 2026: 0% / 5% Rate on Branded Rice, Basmati" description: "New GST rate on rice in 2026 is 0% on unbranded loose rice and 5% on all branded packaged rice. Use Busy to auto-apply the correct GST on every invoice." canonical: "https://busy.in/gst-rates/rice/" author: "Hitesh Aggarwal" published: "2025-05-05T10:20:54.000Z" category: "GST Rates" --- - Unbranded and unpacked rice is exempt from GST, while branded and pre-packaged rice attracts a 5% GST. - The GST rate for rice depends on its packaging and branding, not the type of rice. - Basmati rice is also subject to 0% GST if sold loose and unbranded, but 5% if branded and pre-packaged. - Retailers and online sellers must charge 5% GST on packaged rice, while exporters can claim zero-rated GST. - Small kirana stores selling only loose, unbranded rice may not need to register for GST if their turnover is below ₹40 lakh. # 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**](https://busy.in/hsn/sub-chapter-1006/) , 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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**. **Get a Free Demo of –** [**Best FMCG Accounting Software**](https://busy.in/accounting-software/fmcg/) Live Demo Available Today ## Raise Purchase Orders to Rice Millers Before Stock Depletes Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## 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. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## 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** **Explore a Free Demo of –** [**Best Inventory Management Software For Small Busines**](https://busy.in/accounting-software/inventory-management/) ## 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 ## About the author **Hitesh Aggarwal** 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**. ### What about GST on rice exports? Rice exports are **zero-rated under GST**, and exporters can claim **refunds on input taxes**. ### 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. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)