New GST for Spices: Tax Rate on Whole and Ground Spices in India
Quick Summary
- Unbranded whole spices sold loose are exempt from GST, while branded or packaged whole spices have a 5% GST rate.
- Unbranded powdered spices are taxed at 5%, but branded powdered spices can be taxed at 5% or 18% depending on their classification.
- Spice mixes like garam masala are taxed at 5%, but mixes with additives can be taxed at 18%.
- Branded spices attract GST even if the same product is exempt when sold loose and unbranded.
- GST-registered spice traders can claim Input Tax Credit on costs like packaging and logistics.
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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The applicable GST rate depends on whether the spice is branded, packaged, or processed. Below are the expected new GST rates (no compensation cess) effective after 22 Sep 2025.
New GST Rate on Spices in India
| Type of Spice Product | HSN Code | New 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/pre-packaged & labelled |
| Powdered spices (unbranded) | 0904–0910 | 5% | Loose/mandi sales typically at 5% |
| Branded powdered spices | 0904–0910 / 2103 | 5% or 18% | 5% under Ch.09; 18% if classed as condiments/seasonings (2103) |
| Spice mix (e.g., garam masala) | 0910 / 2103 | 5% or 18% | 0910 mixtures: 5%; with additives under 2103: 18% |
Old GST Rate on Spices in India
(Old GST Rates – Applicable Until 21st September)
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 | Old 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 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.
