GST Rates for Food Products in India: Complete Category-Wise Guide 2026

Understanding GST on Food Products

The Goods and Services Tax (GST) on food products in India is one of the most commonly confused areas for food business operators. The same product can attract different GST rates depending on whether it is branded or unbranded, fresh or processed, sold in a restaurant or purchased from a store. This guide provides a comprehensive breakdown of GST rates for food products as of 2026.

Food Products Exempt from GST (0% Rate)

A large range of basic, unprocessed food items are fully exempt from GST to keep essential foods affordable:

• Fresh and frozen vegetables (potatoes, onions, tomatoes, leafy vegetables)
• Fresh and frozen fruits
• Fresh meat, fish, and poultry (not processed, cured, or in sealed containers)
• Fresh eggs
• Fresh milk (not concentrated, powdered, or flavoured)
• Fresh paneer (not packaged in unit containers)
• Unbranded and unpackaged rice, wheat, maize, pulses (dal)
• Unpackaged wheat flour, rice flour (loose/unbranded)
• Unbranded jaggery (gur)
• Unbranded natural honey
• Salt (all types)
• Unbranded atta (wheat flour) sold in bags without a brand name
• Non-alcoholic toddy (neera)
• Drinking water (other than packaged drinking water)

Food Products Taxed at 5% GST

Branded, packaged, or processed staples attract 5% GST:

• Branded/packaged rice, wheat, maize, pulses (sold in sealed, labelled packages with registered trademark)
• Packaged flour (atta, maida, suji) in sealed containers
• Packaged sugar
• Packaged paneer (in sealed containers)
• Butter, ghee, cheese (in sealed containers)
• Cream (all types)
• Edible oils (refined, crude, mustard, palm, soybean, etc.)
• Condensed milk
• Ice cream (without parlour service)
• Processed/preserved vegetables (frozen peas, canned tomatoes)
• Fruit juice (packaged)
• Roasted nuts (branded, packaged)
• Coffee (not instant) and tea (not instant)
• Sauces, ketchup, salad dressings (below 18% category)
• Spices (all packaged spices)
• Sabudana (tapioca pearls)
• Sugar confectionery (not cocoa-based)
• Restaurants (non-AC, non-hotel): Food and beverages

Food Products Taxed at 12% GST

Product Category	Examples
Fruit/vegetable juices — 100% fresh	Cold-pressed juices, sugarcane juice in sealed bottles
Dry fruits (packaged)	Cashews, almonds, raisins in sealed packs
Preparations of vegetables, fruits, nuts (processed)	Jams, marmalade, pickles, chutneys
Sausages and similar products	Chicken sausages, pork sausages, salami
Namkeens, bhujia, snack foods (>25g)	Haldiram's bhujia, packaged sev, chivda
Pasta, macaroni, noodles	Maggi, pasta packs
Biscuits, waffles, wafers	Parle-G, cream biscuits, glucose biscuits

Food Products Taxed at 18% GST

Product Category	Examples
Chocolates and cocoa-based confectionery	Dairy Milk, Kit Kat, artisanal chocolates
Mineral water and packaged drinking water	Bisleri, Kinley, Aquafina
Carbonated soft drinks	Coca-Cola, Pepsi, carbonated fruit drinks
Instant coffee and instant tea	Nescafé, Bru, instant tea sachets
Malt and malt-based beverages (non-alcoholic)	Horlicks, Bournvita, Boost
Restaurants in 5-star hotels	Food service with ITC benefit

GST on Restaurants — Summary

Restaurant Type	GST Rate	ITC Available?
Standalone restaurants (non-AC)	5%	No
Standalone restaurants (AC)	5%	No
Restaurants in hotels (room rate <₹7,500/night)	5%	No
Restaurants in hotels (room rate >₹7,500/night)	18%	Yes
Cloud kitchens / delivery-only	5%	No
Composition scheme restaurants	5% of turnover (not on bill)	No

Common GST Classification Errors in Food Businesses

• Treating branded packaged rice as exempt (it attracts 5%)
• Applying 5% to instant noodles (Maggi attracts 12%)
• Incorrectly applying 5% to bottled water (it attracts 18%)
• Not charging GST on food delivery through platforms (platforms deduct TCS at 1% — restaurants still owe GST)

Conclusion

Getting GST classification right for your food products is critical to avoid GST notices and penalties. When in doubt, classify upward (charge the higher rate) rather than risk under-reporting GST. For food manufacturers, detailed HSN code classification should be done with the help of a GST practitioner. Velco Legal India's tax team can assist with GST registration, classification, and compliance for food businesses of all sizes.