GST on food depends on the item. Fresh vegetables, fruit, milk, eggs, bread and pre-packaged paneer are Nil (exempt). After the GST 2.0 reform of 22 September 2025, most packaged and branded food — namkeen, biscuits, chocolate, butter, ghee, dry fruits, sauces, ice cream — moved to a flat 5%. Restaurant meals stay at 5% without ITC (18% in specified premises). Aerated and sugary/energy drinks are taxed at 40%.
GST on Food Items — Master Rate Table
The GST rate for every common food category in India after GST 2.0, with whether Input Tax Credit is available on a B2B purchase.
| Food Category | Examples | GST Rate | ITC |
|---|---|---|---|
| Fresh vegetables & fruit | Tomato, onion, potato, banana, apple | Nil | — |
| Milk, curd, lassi (unbranded) | Fresh/pasteurised milk, dahi | Nil | — |
| Paneer & UHT milk (pre-packaged) | Packaged paneer/chena, UHT milk | Nil | — |
| Eggs, unbranded cereals & pulses | Eggs, loose rice, wheat, dal | Nil | — |
| Bread (ordinary) | Sliced/loaf bread, buns | Nil | — |
| Branded packaged staples | Branded atta, rice, flour, besan | 5% | Yes |
| Butter, ghee, cheese | Table butter, ghee, cheese | 5% | Yes |
| Namkeen, bhujia, chips, snacks | Bhujia, mixture, aloo chips, popcorn | 5% | Yes |
| Biscuits, cakes & bakery | Parle-G, cookies, crackers, pastries | 5% | Yes |
| Chocolate & sugar confectionery | Chocolate bars, candy, toffee | 5% | Yes |
| Dry fruits (packaged) | Almonds, cashews, raisins, dates | 5% | Yes |
| Sauces, jam, pasta, preserved food | Ketchup, jam, pasta, pickles | 5% | Yes |
| Ice cream & flavoured milk | Ice cream, Amul Kool | 5% | Yes |
| Fruit & vegetable juice (non-fizzy) | Packaged juice, smoothies | 5% | Yes |
| Restaurant / cloud kitchen | Dine-in, takeaway, app orders | 5% | No |
| Restaurant in specified premises | Hotel room tariff ≥ ₹7,500/night | 18% | Yes |
| Aerated / carbonated drinks | Cola, soda, fizzy flavoured water | 40% | Yes |
| Sugary & energy drinks | Sweetened / caffeinated energy drinks | 40% | Yes |
| Alcoholic beverages | Beer, whisky, wine | Outside GST | — |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025. The 40% slab shown for aerated/energy drinks is the demerit rate that replaced 28% + cess. Confirm the exact HSN classification on the official GST portal before invoicing.
GST on Groceries & Packaged Food
The GST 2.0 reform (22 September 2025) rationalised food into a mass-use 5% slab and kept everyday essentials exempt. Most items that were earlier at 12% or 18% — namkeen, biscuits, chocolate, ghee, butter, dry fruits, sauces and ice cream — now attract a uniform 5%.
Exempt — everyday essentials
- Fresh vegetables & fruit
- Unbranded milk, curd & lassi
- Pre-packaged paneer/chena & UHT milk
- Eggs, loose cereals & pulses
- Ordinary bread
Most packaged & branded food
- Namkeen, chips, bhujia & snacks
- Biscuits, bakery, chocolate & candy
- Butter, ghee, cheese
- Dry fruits, sauces, jam, pasta
- Ice cream, flavoured milk, juices
Before 22 September 2025, packaged snacks and confectionery sat at 12% or 18%. The two-slab reform collapsed most of these into 5%, while UHT milk and pre-packaged paneer moved from 5% to fully exempt. The old 28% + cess on aerated drinks was replaced by a single 40% demerit rate.
Selling packaged food and unsure of the right HSN and rate?
Check My HSN & Rate →GST on Restaurant & Cooked Food
Restaurant food is a service, so a single rate applies to the whole bill regardless of the individual dishes. Most restaurants — standalone, AC or non-AC, dine-in, takeaway and cloud kitchens — charge 5% without ITC. Only restaurants in specified premises (a hotel where the declared room tariff is ₹7,500 or more per night) charge 18% with ITC.
| Restaurant scenario | GST Rate | ITC | Notes |
|---|---|---|---|
| Standalone restaurant — dine-in / takeaway | 5% | No | AC or non-AC — same rate |
| Cloud kitchen (delivery-only) | 5% | No | Treated as a restaurant |
| Food via Zomato / Swiggy | 5% | — | Platform (ECO) pays the GST |
| Restaurant in specified premises | 18% | Yes | Hotel room tariff ≥ ₹7,500 |
| Composition-scheme restaurant | 5% | No | ≤ ₹1.5cr; no GST on bill |
| Outdoor catering (standalone) | 5% | No | Weddings, events |
The earlier AC vs non-AC distinction was removed in 2017; the uniform 5% (no ITC) rate continued under GST 2.0.
Since 1 January 2022, when you order through Zomato or Swiggy, the platform is an Electronic Commerce Operator under Section 9(5) of the CGST Act and pays the 5% GST on the food value on the restaurant's behalf. Delivery and platform fees are a separate service at 18%. See our full GST on restaurant food guide.
Running a restaurant or cloud kitchen? Get your GST classification and filing sorted.
Get Restaurant GST Help →GST on Beverages & Cold Drinks
Beverages split sharply after GST 2.0. Plain milk, lassi, non-fizzy fruit juices and plant-based milks are at the low end; aerated, carbonated, sugary and energy drinks now sit in the 40% demerit slab that replaced the old 28% + 12% cess. Alcohol stays outside GST under state VAT/excise.
| Beverage | GST Rate | Notes |
|---|---|---|
| Plain milk (unbranded) | Nil | Exempt |
| Fruit / vegetable juice (non-fizzy) | 5% | Packaged juice, smoothies |
| Flavoured milk & plant-based milk | 5% | Soy, almond, flavoured milk |
| Tea & coffee (packaged) | 5% | Instant mixes, tea powder |
| Aerated / carbonated drinks | 40% | Cola, soda — demerit slab |
| Sugary & energy drinks | 40% | Sweetened / caffeinated |
| Alcoholic beverages | Outside GST | State VAT / excise |
How GST Adds Up on a Food Bill
5% Restaurant / packaged food
40% Aerated drink
A restaurant on the 5% rate cannot claim Input Tax Credit — GST paid on rent, gas, equipment and packaging becomes an embedded cost. Packaged-food traders (5%) and specified-premises restaurants (18%) can claim ITC on their inputs under normal B2B rules.
Frequently Asked Questions
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