GST for Vegetables: Fresh, Frozen, and Canned
Vegetables are essential for every household, and they are sold in many forms—fresh, frozen, dehydrated, or canned. But how are they taxed under GST? This blog simplifies the gst for vegetables so sellers, retailers, and consumers can understand what’s taxed and what’s not.
BOOK A FREE DEMO
GST on Fresh Vegetables
Good news: gst on fresh vegetables is 0%. That’s right—fresh vegetables are exempt from GST when:
- Sold in their natural form
- Not branded or packaged in a unit container
- Sold loose in mandis, stores, or by vendors
So, buying loose onions, tomatoes, potatoes, or green leafy vegetables attracts no GST at all.
Get a Free Trial – Best Accounting Software For Small Business
When Do Fresh Vegetables Attract GST?
If fresh vegetables are:
- Branded
- Pre-packaged and labelled (with a brand name or trade label)
They attract 5% GST under the exemption withdrawal rule. This ensures fair taxation on branded products, even if the product is essential.
Frozen Vegetables GST Rate
Freezing vegetables extends their shelf life and makes them convenient for storage and transport. These include:
- Frozen green peas
- Frozen mixed veggies
- Frozen corn or beans
| Type | HSN Code | GST Rate |
|---|---|---|
| Frozen unbranded vegetables | 0710 | 0% |
| Branded & packaged frozen vegetables | 0710 | 5% |
| Frozen vegetable mixes with seasoning or sauces | 2106 | 12% or 18% |
Get a Free Trial – Best GST Accounting Software For Small Business
GST on Dehydrated and Canned Vegetables
Dehydrated vegetables (like garlic powder, onion flakes, or dry carrot) and canned vegetable mixes are processed items.
| Product | HSN Code | GST Rate |
|---|---|---|
| Dehydrated vegetables (basic) | 0712 | 5% |
| Canned/bottled vegetables (plain) | 2001 | 12% |
| Canned vegetables in sauces/syrup | 2001 | 18% |
Get a Free Demo – Best Billing and Invoicing Software
GST Exemption Summary
| Category | GST Rate |
|---|---|
| Loose, fresh vegetables | 0% (Exempt) |
| Branded or packaged fresh veggies | 5% |
| Unbranded frozen vegetables | 0% (Exempt) |
| Branded frozen vegetables | 5% |
| Dehydrated vegetables (basic) | 5% |
| Canned/flavored vegetables | 12%–18% |
Input Tax Credit (ITC) for Vegetable Sellers
- Packaging materials
- Freezers, cold storage units
- Transport and logistics
- Advertising or labeling costs
Fresh vegetable vendors usually don’t register under GST due to their exempt status, unless they also sell other taxable goods.
Explore a Free Demo – Best Inventory Management Software For Small Business
Conclusion
Understanding gst for vegetables helps you shop smarter, price right, and file taxes correctly. Whether you’re a wholesaler, supermarket, or consumer, knowing what’s taxed and what’s exempt is key.
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 (FAQs)
- Is there GST on fresh vegetables?No. GST on fresh vegetables is 0% unless they are branded and packaged.
- What is the frozen vegetables GST rate?Frozen vegetables attract 5% GST if branded. Unbranded frozen goods are exempt.
- Are dehydrated vegetables taxed under GST?Yes. GST on dehydrated vegetables is typically 5%, but it may go higher if mixed with other ingredients.
- Can vegetable sellers claim Input Tax Credit?Yes, but only if they deal in taxable items like branded, frozen, or canned vegetables.
- Is GST charged on canned peas or carrots?Yes. Canned plain vegetables attract 12%, while flavored ones can be taxed at 18%.
