GST on Food Products and Beverages – Latest 2025 Rate Chart
Whether you’re a small restaurant owner creating a new menu or a savvy shopper checking your grocery bill, understanding the Goods and Services Tax (GST) on food is crucial. The rates can seem confusing, varying from 0% on fresh vegetables to 28% on some beverages. As India’s tax landscape evolves, staying updated with the latest regulations is essential for compliance and accurate financial planning. This comprehensive GST rate chart for food products for 2025 is designed to demystify the taxes on everyday items. It simplifies the complex slabs and helps business owners and individuals navigate the tax system with confidence by providing the latest food GST rates in India.
What is GST and How Does It Apply to Food Items in India?
The Goods and Services Tax (GST) is an indirect tax that has replaced many other indirect taxes in India, such as VAT, service tax, and excise duty. It’s a single, destination-based tax applied to the supply of goods and services. For the food industry, GST has standardized taxation, but the rate isn’t one-size-fits-all. Different tax slabs apply depending on the nature of the product—whether it’s a basic necessity, a processed good, or a luxury item. This system is designed to make essential food affordable while taxing value-added and non-essential products at higher rates.
A Quick Refresher on GST Components: CGST, SGST, and IGST
When you look at a food bill, you’ll often see the GST broken down into components. Understanding these is key to grasping how the tax works.
- CGST (Central Goods and Services Tax): This is the portion of the tax collected by the Central Government.
- SGST (State Goods and Services Tax): This is the portion collected by the State Government where the transaction occurs.
- IGST (Integrated Goods and Services Tax): This tax is collected by the Central Government on inter-state transactions (when goods or services are supplied from one state to another).
For example, if a café in Maharashtra sells a pastry worth ₹100 with 18% GST, the bill will show ₹9 as CGST and ₹9 as SGST. However, if that same café ships a box of pastries to a customer in Karnataka, the entire 18% GST will be charged as IGST (₹18), which is then apportioned between the Centre and the destination state.
Why GST Rates Vary for Different Food Products
The variation in GST rates for food is not random; it’s a deliberate policy decision by the GST Council, the governing body for GST in India. The underlying principle is to tax items based on their necessity and level of processing.
- Essential and Unprocessed Items: Basic food staples like fresh vegetables, fruits, unbranded flour, and fresh milk are considered essential for every household. To keep these items affordable for everyone, they are placed in the 0% GST slab.
- Packaged and Processed Items: As food items undergo processing and packaging, they move into higher tax brackets. For instance, branded flour or packaged paneer attracts a 5% GST.
- Value-Added and Luxury Goods: Highly processed foods, confectionery like chocolates and pastries, and aerated beverages are considered non-essential or luxury items. These fall into the higher 12%, 18%, or even 28% GST slabs.
These rates are dynamic and can be revised by the GST Council based on economic needs and public feedback, making it crucial for businesses to stay informed of any changes.
The Ultimate GST Rate Chart for Food Products & Beverages (2025)
To simplify compliance and understanding, we have compiled the GST food items latest rates 2025. This section breaks down common food products and beverages by their applicable GST slab. This chart serves as a quick reference guide for business owners, accountants, and consumers alike. For precise details and legal accuracy, it is always recommended to refer to the specific HSN codes for each product on the official GST Portal.
Nil GST (0%) Food Items – The Essentials
These items form the backbone of daily nutrition in India and are kept tax-free to ensure they remain affordable and accessible to all sections of society. This category primarily includes fresh, unprocessed, and unbranded staple foods.
| Item Category | Examples | GST Rate |
|---|---|---|
| Fresh Produce | Vegetables, Fruits, Roots | 0% |
| Grains & Cereals | Wheat, Rice, Pulses (unbranded) | 0% |
| Dairy | Fresh Milk, Curd, Lassi, Buttermilk (unbranded) | 0% |
| Other Staples | Salt, Jaggery (Gur), Eggs, Water (not bottled) | 0% |
5% GST Food Items – Common Packaged Goods
This slab covers essential items that are sold in packaged or branded form. The 5% tax is a nominal rate applied to products that have undergone minimal processing or are sold under a registered brand name, distinguishing them from their loose, unbranded counterparts.
| Item Category | Examples | GST Rate |
|---|---|---|
| Branded Staples | Packaged Paneer, Branded Flour/Cereals, Pre-packaged & labelled Curd/Lassi | 5% |
| Spices & Sweeteners | Spices, Sugar, Tea, Coffee Beans, Honey | 5% |
| Processed Foods | Frozen Vegetables, Mishti/Sweets, Skimmed Milk Powder, Packaged Raisins | 5% |
12% GST Food Items – Processed and Value-Added Products
This category includes more significantly processed food items that have a longer shelf life and added value. These products are common in households but are not considered basic essentials in the same way as fresh produce or grains.
| Item Category | Examples | GST Rate |
|---|---|---|
| Dairy Products | Butter, Ghee, Cheese, Condensed Milk | 12% |
| Packaged Juices | Fruit Juices, Vegetable Juices (packaged and without added sugar) | 12% |
| Snacks & Others | Namkeen, Bhujia, Frozen Meat Products, Pickles, Sausages | 12% |
18% GST Food Items – Indulgences and Confectionery
The 18% GST rate is the standard rate that applies to a vast range of goods and services in India. In the food sector, it covers items that are considered indulgences or non-essential luxuries. This includes most ready-to-eat meals, confectionery, and certain beverages.
| Item Category | Examples | GST Rate |
|---|---|---|
| Confectionery | Chocolates, Pastries, Cakes, Ice Cream, Chewing Gum | 18% |
| Condiments & Mixes | Sauces, Soups, Instant Food Mixes, Mayonnaise | 18% |
| Beverages | Packaged Mineral Water, Non-alcoholic Beer | 18% |
Understanding the GST on Beverages Price List in India
Beverages are taxed differently based on their composition and perceived health impact. Simple, fruit-based drinks are taxed lower, while aerated and caffeinated drinks fall into the highest tax slab. This is because they are often considered ‘sin goods’ or luxury items, attracting not just the highest GST rate but also an additional Cess. The GST beverages price list India reflects this tiered tax structure.
| Beverage Type | GST Rate | Cess |
|---|---|---|
| Packaged Drinking Water | 18% | 0% |
| Fruit-based drinks (without fizz) | 12% | 0% |
| Aerated Drinks (Cola, Lemonade, etc.) | 28% | 12% |
| Caffeinated Beverages | 28% | 12% |
Decoding the GST Impact on Food and Beverages in India for Businesses
For businesses in the food and beverage sector, understanding GST rates is only half the battle. Correct application, billing, and compliance are critical for smooth operations and avoiding legal penalties. The GST impact on food and beverages in India varies significantly depending on the type of business.
For Restaurant, Cafe, and Cloud Kitchen Owners
The GST regime for restaurants is unique. The government has simplified the tax structure for them, but it comes with a significant condition related to tax credits.
- GST on Services: A uniform GST rate of 5% is applicable to all restaurant services, whether it’s for dine-in, takeaway, or delivery. This applies to both air-conditioned and non-air-conditioned establishments.
- Input Tax Credit (ITC) Explained: Input Tax Credit (ITC) is the credit that businesses can claim on the GST they paid on their inputs (raw materials, services, etc.). However, restaurants charging 5% GST are not eligible to claim ITC. This means they cannot offset the GST paid on rent, raw materials (like vegetables, flour, spices), or other operational expenses against their final GST liability. This is a crucial point for business owners to factor into their pricing and financial models. Understanding the nuances is critical, as detailed in our GST Input Tax Credit (ITC) Full Guide 2025 – Eligibility, Limits & Common Issues.
- Billing: It is mandatory for all restaurants to issue GST-compliant invoices that clearly show the 5% GST charged. For digital food aggregators, the responsibility of collecting and depositing GST often lies with the aggregator itself.
For Grocery Stores and Packaged Food Retailers
Retailers dealing with a wide variety of food products face a different set of challenges. Their primary focus must be on accurate product classification and meticulous record-keeping.
- HSN Codes: The Harmonized System of Nomenclature (HSN) is a globally accepted system for classifying goods. For a detailed breakdown, refer to our HSN & SAC Code Complete Guide – Choosing the Correct Code for GST. Every food product has a specific HSN code, which determines its GST rate. Retailers must use the correct HSN code for each item on their invoices to ensure accurate tax application. A mistake here can lead to incorrect tax collection and future disputes.
- Compliance: Timely filing of GST returns (like GSTR-1 and GSTR-3B) is non-negotiable. For detailed instructions, see our guide on How to File GST Returns Online: A Step-by-Step Guide of the GST Filing Process & Procedure. Proper management of purchase and sales records is essential for claiming eligible ITC (on goods other than those sold to restaurants under the 5% scheme) and ensuring smooth compliance. Managing the GST impact on food and beverages in India requires meticulous inventory and billing management, often best handled by robust accounting software.
Conclusion
Understanding the Goods and Services Tax on food and beverages is no longer optional—it’s a fundamental requirement for every business owner and an empowering piece of knowledge for every consumer. The GST rates are logically structured, moving from 0% for unprocessed essentials to 28% plus cess for luxury beverages, reflecting the government’s socio-economic policies. For businesses, compliance with these rates, proper use of HSN codes, and understanding the nuances of Input Tax Credit are vital for financial health and legal standing. Staying updated with the latest changes announced by the GST Council is equally important.
We hope this detailed GST rate chart for food products serves as a valuable guide for your business and personal financial planning, bringing clarity to your grocery bills and business invoices. The world of taxation can be intricate, but with the right information, it becomes manageable.
Navigating GST compliance can be complex. If you need expert assistance with GST registration, filing, or accounting for your food business, schedule a free consultation with a TaxRobo expert today!
Frequently Asked Questions (FAQs)
Q1. What is the GST rate on restaurant services in India in 2025?
A: The GST rate for restaurant services (both dine-in and takeaway) is 5% without the benefit of Input Tax Credit (ITC). This rate applies uniformly whether it’s a standalone restaurant or one located within a hotel (where the room tariff is below ₹7,500 per night).
Q2. Are essential food items like unbranded rice and wheat flour taxable under GST?
A: No. Essential food items like fresh vegetables, fruits, and unbranded staples such as rice, wheat flour, and pulses are exempt from GST. They fall under the 0% tax slab to ensure they remain affordable for all.
Q3. How can I find the official and latest food GST rates in India?
A: The most reliable source is the official GST portal maintained by the Government of India. You can use the HSN code search functionality to find the exact rate for any product. For expert guidance and simplified compliance, consulting with a tax professional like TaxRobo is recommended.
Q4. Does the GST on beverages apply to alcoholic drinks?
A: No, alcohol for human consumption is kept outside the purview of GST. It is taxed separately by state governments under State Excise Duty and VAT. The GST beverages price list India mentioned in this article applies only to non-alcoholic drinks.
