After the GST 2.0 reform effective 22 September 2025, almost every packaged snack is taxed at 5% — namkeen, bhujia, sev, potato chips, wafers, popcorn (salted and caramel), Indian sweets/mithai, chocolates and ice cream were all cut to 5% (mostly from 12% or 18%). Loose, unbranded staples like papad, murmura and sugar remain Nil. Aerated & sugary drinks jump to 40%, and protein/health-food preparations stay at 18%.
GST Rate Chart — Snacks & Packaged Foods
The current GST rate for every common snack, sweet and confectionery item, with its HSN code, under the GST 2.0 two-slab structure. Use our HSN code finder to confirm classification.
| Product | GST Rate | HSN | Notes |
|---|---|---|---|
| Namkeen, bhujia, sev, mixture | 5% | 2106 | Cut from 12% on 22 Sep 2025 |
| Potato chips & wafers (Lay's, Kurkure style) | 5% | 2005 / 1905 | Cut from 12% |
| Popcorn — salted or spiced (loose or packed) | 5% | 2008 | Was 12% |
| Popcorn — caramel / sugar-coated | 5% | 2008 | Was 18% · unified to 5% (CBIC) |
| Indian sweets / mithai (barfi, ladoo, gulab jamun) | 5% | 2106 | Loose or pre-packaged |
| Chocolates & sugar confectionery | 5% | 1806 / 1704 | Cut from 18% |
| Biscuits & bakery snacks | 5% | 1905 | Cut from 18% |
| Ice cream & kulfi | 5% | 2105 | Cut from 18% |
| Dry fruits & nuts (cashew, almond, pista) | 5% | 0801 / 0802 | Cut from 12% |
| Papad / murmura / sugar — loose, unbranded | Nil | 1905 / 1904 | Exempt staple |
| Protein powder, whey, energy / protein bars | 18% | 2106 | Food preparation, not medicine |
| Aerated / carbonated / sugary drinks | 40% | 2202 | Demerit rate · plus cess where applicable |
Rates reflect the GST 2.0 two-slab structure (5% / 18% + 40% demerit) effective 22 September 2025. Confirm on the official GST portal before invoicing.
Before 22 September 2025, namkeen and chips were 12%, chocolates and caramel popcorn were 18%. GST 2.0 collapsed the 12% and most 18% food slabs into a single 5% rate, so update your billing masters — charging the old 12%/18% now over-taxes your customers.
Loose & Unbranded vs Pre-packaged
For basic staples, the deciding factor is whether the item is pre-packaged and labelled. Processed snacks (namkeen, chips, sweets) are 5% either way, but raw staples flip between Nil and 5%.
Loose / unbranded staples
- Papad sold loose
- Puffed rice (murmura) loose
- Sugar & jaggery, unbranded
- Pulses, cereals, flour sold loose
- No GST — exempt supply
Pre-packaged & processed
- Branded, pre-packaged & labelled papad
- Namkeen, bhujia, sev, chips (any brand)
- Sweets, chocolates, biscuits, ice cream
- Pre-packaged & labelled murmura
- Processing keeps it at 5% regardless of brand
Charge Nil when
- Item is a basic staple (papad, murmura, sugar)
- It is sold loose and is not pre-packaged & labelled
- No registered brand or unit-container labelling
Charge 5% when
- It is a processed snack (namkeen, chips, sweets)
- It is pre-packaged and labelled for retail sale
- It is a chocolate, biscuit, ice cream or dry-fruit pack
Not sure whether your product is exempt or 5%?
Get My Product Rate →GST on Popcorn — All Types Now 5%
The infamous popcorn "salt vs caramel" debate is over. At the 56th GST Council meeting, all popcorn — salted, spiced and caramel/sugar-coated, whether loose or in packets — was unified at 5% GST from 22 September 2025 (CBIC clarified caramel popcorn is 5%, not 18%).
How GST Adds Up — ₹500 of Snacks
5% Namkeen / chips / sweets
40% Aerated / sugary drink
Under the old 12% namkeen rate, ₹500 of snacks cost ₹560 — the 5% rate now brings that to ₹525. Try any value in our GST calculator.
The 5% snack rate is a supply of goods, so a manufacturer or trader on the regular scheme can claim Input Tax Credit on inputs and packaging. A small snack shop under ₹1.5 crore can instead opt for the composition scheme at 1% — weigh ITC against simpler compliance.
Running a snack, sweet or namkeen business? Get your GST set up correctly.
Talk to a GST Expert →Snack Business GST Checklist
GST registration is mandatory once aggregate turnover crosses ₹40 lakh for goods (₹20 lakh for special-category states). Small manufacturers and traders can consider the composition scheme.
- GST registration (GSTIN)
- Correct 5% / Nil classification per product
- Right HSN code on every invoice
- Tax invoice / bill of supply
- GSTR-1 (outward supplies)
- GSTR-3B (monthly / quarterly)
- ITC on inputs & packaging
- E-way bill for goods movement
- GSTR-9 annual return
- Composition CMP-08 (if opted)
Frequently Asked Questions
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