GST for Spices: Tax Rate on Whole and Ground Spices in India
India is famous for its spices, with every kitchen shelf stacked with turmeric, cumin, red chilli, garam masala, and more. Whether sold whole or in powdered form, loose or branded—spices fall under GST. In this blog, we explain the gst for spices, including tax rates, classifications, and what makes a spice item taxable or exempt.
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GST Rate on Spices in India
Spices are classified under Chapter 9 of the HSN Code. The applicable GST rate depends on whether the spice is branded, packaged, or processed.
| Type of Spice Product | HSN Code | GST Rate | Remarks |
|---|---|---|---|
| Whole spices (unbranded) | 0904–0910 | 0% | Exempt when unbranded and unpacked |
| Branded/packaged whole spices | 0904–0910 | 5% | If sold under a brand name |
| Powdered spices (unbranded) | 0904–0910 | 5% | Lower slab for loose masala powder |
| Branded powdered spices | 0904–0910 | 5% or 12% | Depends on processing & branding |
| Spice mix (e.g., garam masala) | 0910 | 5% / 12% | Blended spices are often 12% |
GST on Branded vs Unbranded Spices
If a spice is pre-packaged and sold under a registered brand name, it attracts GST even if the product itself is otherwise exempt when sold loose. This is where gst on branded spices becomes important for packaged food sellers.
GST on Ground Masala and Spice Mixes
Popular powdered and blended spice items include red chilli powder, turmeric powder, coriander powder, chaat masala, garam masala, and sambhar masala. These usually fall under 5%, but mixtures or heavily processed spice blends can fall under 12% if they are:
- Made using industrial mixing
- Sold in retail packs
- Branded and advertised as ready-to-cook
Input Tax Credit for Spice Sellers
If you’re a GST-registered trader, manufacturer, or exporter, you may be eligible to claim Input Tax Credit on packaging, processing, and logistics costs incurred while selling taxable spice items.
Understanding the gst for spices helps food retailers, spice processors, and even households know the price breakdown better. From turmeric to garam masala, GST plays a role in how we spice up our meals.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions (FAQs)
- What is the GST rate on spices in India?
- 0% for loose, unbranded whole spices
- 5% for most branded or packaged spices
- Up to 12% for mixed or processed spice powders
- Is there GST on turmeric or red chilli powder?Yes. Branded or packaged spice powders attract 5% GST.
- Are all spice mixes taxed the same?No. Basic mixes like garam masala may be 5%, while specialty blends (ready-to-cook) can be 12%.
- Can spice traders claim input tax credit (ITC)?Yes, if GST-registered and selling taxable goods, they can claim ITC on packaging, raw materials, etc.
- Is there GST on loose masalas sold in local markets?No. If unbranded and sold loose (non-packaged), they are GST exempt.
