Grocery HSN Code: Classification for Different Grocery Items
Grocery covers a wide range of daily use products such as cereals, pulses, edible oil, spices, packaged foods and more. Under GST, all these items do not share a single HSN code or single GST rate. Each grocery item has its own classification based on its nature and processing.
What is the HSN Code for Grocery Products?
There is no single HSN called grocery. Instead, grocery items are spread across many chapters:
- Cereals like wheat and rice under chapter 10
- Pulses and beans under chapter 7
- Edible oils under chapter 15
- Sugar and confectionery under chapter 17
- Prepared food items under chapter 19 and 21
So, when you bill grocery, you must pick the correct HSN for each product rather than use a generic grocery description.
How Grocery Items are Classified Under HSN Code?
Classification depends on:
- Whether the item is primary produce (like raw rice, wheat, pulses)
- Whether it is branded or unbranded
- Whether it is packaged and labelled for retail
- How much processing is done, such as roasting, frying or mixing
For example:
- Unbranded wheat and rice in loose form can be exempt
- Branded and packed wheat flour may attract a lower slab like 5 percent
- Ready to eat packaged snacks may attract 18 percent
That is why grocery shops often use many HSN codes in their billing software.
Understanding the HSN Code for Online Grocery Stores
Online grocery stores follow the same rule as physical stores. There is:
- No special HSN code only because the sale is online
- The same product level HSN is used on invoices
- GST rate is decided only by the nature of the item, not by channel of sale
However, service charges like delivery fees or convenience charges have their own SAC code and GST rate for services.
GST Implications on Grocery Products
GST for grocery items is designed to keep essential food items affordable. In general:
- Basic foodgrains like rice and wheat in loose, unbranded form can be exempt
- Branded and packaged staples like flour, pulses and certain edible oils are often taxed at 5 percent
- Processed and ready to eat items like biscuits, namkeen and instant mixes usually fall in 12 percent or 18 percent slabs and under the new structure mostly shift towards 18 percent
Grocery traders must configure their billing system carefully so that every SKU carries correct HSN and rate.
HSN and GST Rate Table for Common Grocery Items
Below is a simple illustration for typical grocery products. Exact rates can change with new notifications.
| HSN Code | Product Description | Product Type or Variant | GST Rate* |
|---|---|---|---|
| 1001 / 1101 | Wheat and wheat flour | Loose unbranded wheat, branded wheat flour | 0% for loose, 5% for branded packed flour |
| 1006 | Rice | Loose unbranded rice, branded packed rice | 0% for loose, 5% for branded packed rice |
| 0713 | Pulses (dried leguminous vegetables) | Toor, chana, moong, urad dal | 0% or 5% depending on branding and packing |
| 1511 / 1512 | Edible oils | Mustard, groundnut, sunflower oil | 5% for most packed edible oils |
| 1904 / 2106 | Prepared foods and mixes | Breakfast cereals, instant mixes, namkeen | Mostly 18% under standard slab |
*Rates are indicative and based on typical treatment of essential items versus processed foods. Please confirm the exact rate for each item from the latest GST notifications.
I’m Fazeel Zaidi, a Chartered Accountant based in Prayagraj with 8 years of experience. I specialize in GST and Audits, helping businesses stay compliant and audit-ready. With a B.Com background, I focus on practical, clear guidance that simplifies regulations and supports better decision-making.
Frequently Asked Questions
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Is there one common HSN code for all grocery items?
No, grocery is a commercial term. Each item like rice, oil or sugar has its own HSN code and GST rate.
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How does GST affect the sale of grocery products?
Basic food items can be exempt or taxed at 5 percent. Processed and packaged items usually attract higher GST like 18 percent, which impacts the final selling price.
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Are online grocery stores given a special HSN code?
No, online grocery stores use the same HSN codes as offline stores. Only service charges have separate SAC codes.
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Does packaging change the HSN code for grocery?
Packaging usually does not change the HSN, but it can change the tax rate. Branded and retail packed foods often attract GST where loose unbranded items may be exempt.
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How should small grocery shops manage HSN codes?
They should configure their billing software with correct HSN and GST rate for each main product group and regularly review any changes in GST rules.