GST Rate Changes in the Food Sector – 56th GST Council Meeting
(3rd September 2025)
The 56th meeting of
the GST Council, held on 3rd September 2025 at Sushma Swaraj
Bhavan, New Delhi, under the chairpersonship of Union Finance &
Corporate Affairs Minister Smt. Nirmala Sitharaman, brought significant
changes to the Goods and Services Tax (GST) rates applicable to the food
sector.
These changes are aimed
at providing relief to the common man and aspirational middle class,
while also ensuring uniform tax treatment to avoid misclassification and
disputes. The Council has also issued FAQs to clarify the rationale
behind rate rationalisation.
Food Sector – GST Rate Change (From 5% →
Nil)
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff Item
|
Description
of Goods
|
|
1
|
0401
|
Ultra-High
Temperature (UHT) milk
|
|
2
|
0406
|
Chena
or paneer, pre-packaged and labelled
|
|
3
|
1905
|
Pizza
bread
|
|
4
|
1905
or 2106
|
Khakhra,
chapathi or roti
|
Food Sector – GST Rate Change (From 18% →
Nil)
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff Item
|
Description
of Goods
|
|
1
|
2106
|
Paratha,
parotta and other Indian breads by any name called
|
Food Sector – GST Rate Change (From 12% →
5%)
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff Item
|
Description
of Goods
|
|
1
|
0402
91 10, 0402 99 20
|
Condensed
milk
|
|
2
|
0405
|
Butter
and other fats (ghee, butter oil, etc.) and oils derived from milk; dairy
spreads
|
|
3
|
0406
|
Cheese
|
|
4
|
0801
|
Brazil
nuts, dried, whether or not shelled or peeled
|
|
5
|
0802
|
Other
dried nuts (Almonds, Hazelnuts, Chestnuts, Pistachios, Macadamia nuts, Kola
nuts, Pine nuts) [other than dried areca nuts]
|
|
6
|
0804
|
Dates
(soft or hard), figs, pineapples, avocados, guavas, mangoes (other than dried
sliced mangoes), mangosteens, dried
|
|
7
|
0805
|
Citrus
fruit, dried (Oranges, Mandarins, Clementines, Grapefruit, Lemons, Limes,
etc.)
|
|
8
|
0813
|
Fruit,
dried (other than 0801 to 0806); mixtures of nuts or dried fruits [other than
dried tamarind]
|
|
9
|
1108
|
Starches;
inulin
|
|
10
|
1501
|
Pig
fats (including lard) and poultry fat, other than 0209 or 1503
|
|
11
|
1502
|
Fats
of bovine animals, sheep or goats, other than 1503
|
|
12
|
1503
|
Lard
stearin, lard oil, oleo stearin, oleo-oil, tallow oil, not
emulsified/mixed/prepared
|
|
13
|
1504
|
Fats
and oils of fish or marine mammals, refined/not, but not chemically modified
|
|
14
|
1505
|
Wool
grease and fatty substances (including lanolin)
|
|
15
|
1506
|
Other
animal fats and oils, refined/not, but not chemically modified
|
|
16
|
1516
|
Animal
or microbial fats/oils, hydrogenated, re-esterified, elaidinised, refined but
not further prepared
|
|
17
|
1517
|
Edible
mixtures of animal/microbial fats or oils (other than those of 1516)
|
|
18
|
1518
|
Chemically
modified fats/oils; inedible mixtures of animal, vegetable, microbial
fats/oils not elsewhere specified
|
|
19
|
1601
|
Sausages
and similar products of meat, offal, blood or insects; food preparations
based on these
|
|
20
|
1602
|
Other
prepared/preserved meat, meat offal, blood or insects
|
|
21
|
1603
|
Extracts
and juices of meat, fish, crustaceans, molluscs or other aquatic
invertebrates
|
|
22
|
1604
|
Prepared
or preserved fish; caviar and substitutes
|
|
23
|
1605
|
Prepared
or preserved crustaceans, molluscs and other aquatic invertebrates
|
|
24
|
1701
91, 1701 99
|
Refined
sugar with added flavouring/colouring, sugar cubes (other than those at
5%/Nil)
|
|
25
|
1704
|
Sugar
boiled confectionery
|
|
26
|
1902
|
Pasta
(spaghetti, macaroni, noodles, lasagne, ravioli, couscous etc.),
cooked/stuffed/prepared
|
|
27
|
1905
90 30
|
Extruded/expanded
savoury or salted products (other than un-fried/un-cooked snack pellets)
|
|
28
|
2001
|
Vegetables,
fruit, nuts prepared/preserved by vinegar/acetic acid
|
|
29
|
2002
|
Tomatoes
prepared/preserved otherwise than by vinegar/acetic acid
|
|
30
|
2003
|
Mushrooms
and truffles prepared/preserved otherwise than by vinegar/acetic acid
|
|
31
|
2004
|
Frozen
vegetables (other than 2006)
|
|
32
|
2005
|
Non-frozen
vegetables prepared/preserved (other than 2006)
|
|
33
|
2006
|
Vegetables,
fruit, nuts, fruit-peel preserved by sugar (drained, glacé, crystallised)
|
|
34
|
2007
|
Jams,
jellies, marmalades, fruit/nut purées or pastes (with/without added sugar)
|
|
35
|
2008
|
Other
prepared/preserved fruits, nuts, edible plant parts (e.g., roasted cashews,
groundnuts, squash drinks, etc.)
|
|
36
|
2009
|
Fruit
or vegetable juices, unfermented, with/without sugar
|
|
37
|
2009
89 90
|
Tender
coconut water, pre-packaged and labelled
|
|
38
|
2101
30
|
Roasted
chicory & coffee substitutes, extracts, essences, concentrates
|
|
39
|
2102
|
Yeasts
(active/inactive); other microorganisms (dead); baking powders
|
|
40
|
2103
|
Sauces,
condiments, curry paste, mayonnaise, salad dressings, prepared mustard
|
|
41
|
2106
|
Texturised
vegetable proteins (soya bari), pulse-based bari (mungodi), batters
|
|
42
|
2106
90
|
Namkeens,
bhujia, mixtures, chabena, etc. (ready-to-eat, pre-packaged & labelled)
|
|
43
|
2106
90 91
|
Diabetic
foods
|
|
44
|
2201
|
Drinking
water packed in 20 litre bottles
|
|
45
|
2202
99 10
|
Soya
milk drinks
|
|
46
|
2202
99 20
|
Fruit
pulp/fruit juice-based drinks [other than carbonated drinks with juice]
|
|
47
|
2202
99 30
|
Beverages
containing milk
|
Food Sector – GST Rate Change (From 18% →
5%)
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff Item
|
Description
of Goods
|
|
1
|
1107
|
Malt,
whether or not roasted
|
|
2
|
1302
|
Vegetable
saps and extracts; pectic substances, pectinates and pectates; agar-agar and
other mucilages and thickeners, derived from vegetable products [other than
tamarind kernel powder]
|
|
3
|
1517
10
|
All
goods i.e. Margarine, Linoxyn
|
|
4
|
1520
00 00
|
Glycerol,
crude; glycerol waters and glycerol lyes
|
|
5
|
1521
|
Vegetable
waxes (other than triglycerides), Beeswax, other insect waxes and spermaceti,
refined or not, coloured or not
|
|
6
|
1522
|
Degras;
residues from treatment of fatty substances or animal/vegetable waxes
|
|
7
|
1702
|
Other
sugars (chemically pure lactose, maltose, glucose, fructose in solid form,
sugar syrups, artificial honey, caramel) [other than palmyra sugar &
palmyra jaggery]
|
|
8
|
1704
|
Sugar
confectionery [other than mishri, batasha, bura, sakar, khadi sakar, harda,
sakariya, gatta, kuliya, elaichidana, lukumdana, traditional chikkis, sugar
makhana, groundnut sweets, gajak, sugar boiled confectionery]
|
|
9
|
1804
|
Cocoa
butter, fat and oil
|
|
10
|
1805
|
Cocoa
powder, not containing added sugar or sweetening matter
|
|
11
|
1806
|
Chocolates
and other food preparations containing cocoa
|
|
12
|
1901
|
Malt
extract; food preparations of flour, groats, meal, starch or malt extract
(not containing cocoa or <40% cocoa); preparations of milk products (not
containing cocoa or <5% cocoa)
|
|
13
|
1904
|
All
goods i.e. Corn flakes, bulgur wheat, prepared foods from cereal flakes
|
|
14
|
1905
|
Pastry,
cakes, biscuits & other bakers’ wares (with or without cocoa); communion
wafers, cachets, sealing wafers, rice paper etc.
|
|
15
|
2101
11, 2101 12 00
|
Extracts,
essences & concentrates of coffee; preparations with basis of coffee
|
|
16
|
2101
20
|
Extracts,
essences & concentrates of tea or mate; preparations with basis of
tea/mate
|
|
17
|
2104
|
Soups,
broths and preparations therefor; homogenised composite food preparations
|
|
18
|
2105
00 00
|
Ice
cream and other edible ice, whether or not containing cocoa
|
|
19
|
2106
|
Food
preparations not elsewhere specified or included
|
|
20
|
2201
|
Waters
(natural, artificial mineral waters, aerated waters), not containing added
sugar or flavouring
|
|
21
|
2202
99
|
Plant-based
milk drinks, ready for direct consumption
|
|
22
|
3503
|
Gelatin
& derivatives; isinglass; other animal-origin glues (excluding casein
glues of 3501)
|
|
23
|
3505
|
Dextrins
& other modified starches (e.g., pregelatinised, esterified);
starch-based glues
|
Food Sector – GST Rate Change (From 18% →
40%)
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff Item
|
Description
of Goods
|
|
1
|
2202
91 00, 2202 99
|
Other
non-alcoholic beverages
|
Food Sector – GST Rate Change (From 28% →
40%)
|
S.
No.
|
Chapter
/ Heading / Sub-heading / Tariff Item
|
Description
of Goods
|
|
1
|
2106
90 20
|
*Pan
masala
|
|
2
|
2202
10
|
All
goods [including aerated waters], containing added sugar or other sweetening
matter or flavoured
|
|
3
|
2202
99 90
|
Caffeinated
Beverages
|
|
4
|
2202
|
Carbonated
Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice
|
FAQs Clarification on GST Rate Changes
1. Exemption to UHT Milk
- Earlier Position:
Dairy milk (other than UHT milk) was already exempt.
- Now:
UHT (Ultra High Temperature) milk has been exempted to align tax
treatment.
- Plant-based milk drinks:
- Earlier – Plant-based milk (except
soya milk) at 18%, Soya milk at 12%.
- Now – Both reduced to 5%.
2. 40% Rate on Other
Non-Alcoholic Beverages
- Rationale: To maintain uniform tax
treatment for similar goods and avoid misclassification/disputes.
3. GST Rate on Food
Preparations (NES)
- Food preparations not elsewhere
specified will attract 5% GST.
4. Indian Breads –
Exemption
- Earlier:
- Pizza bread, roti, porotta, paratha
etc. attracted different rates.
- Ordinary bread was already exempt.
- Now:
All Indian breads, by whatever name called, have been exempted.
5. Carbonated Beverages
of Fruit Drink/Fruit Juice
- Earlier:
These attracted Compensation Cess + GST.
- Now:
Compensation Cess has ended. GST rate increased to 40% to maintain
pre-rationalisation tax level.
6. Paneer vs. Cheese –
Differential Treatment
- Paneer (chena):
- Unpackaged – Nil rate
(already exempt earlier).
- Pre-packaged & labelled – Now exempted.
- Cheese (other than paneer):
Still taxed.
- Reason:
Paneer is Indian cottage cheese, mostly produced in small-scale sector.
This change supports domestic producers.
7. Natural Honey vs.
Artificial Honey
- Differential tax treatment
introduced.
- Reason:
To promote natural honey over artificial substitutes.
Conclusion
The 56th GST Council
Meeting marks a major rate rationalisation in the food sector.
- Daily essentials
like milk, paneer, breads, and pizza bread are now exempt.
- Healthy options
like nuts, dried fruits, soya milk, and fruit-based drinks are more
affordable at 5% GST.
- Luxury/health-risk products
like pan masala, caffeinated and carbonated beverages face higher
GST (40%).
This two-pronged
approach balances relief to consumers with discouragement of
harmful consumption while ensuring simplified tax treatment and
reducing classification disputes.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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