HSN Code for Food Products India — GST Rate Guide 2026

Food taxation in India's GST framework is simultaneously the most important and the most complex area of product classification for Indian businesses.

It is the most important because food products touch every Indian business — from the grain trader in Khanna mandi, to the FMCG distributor supplying kirana stores, to the food manufacturer producing packaged snacks, to the kirana store owner billing hundreds of different products daily, to the restaurant charging GST on meals. The sheer breadth of food commerce in India means that food HSN codes and GST rates affect more Indian businesses than any other product category.

It is the most complex because food GST rates are not uniform — they range from completely exempt (0% GST on fresh vegetables, raw grains, milk) to 5% (packaged branded staples, edible oils, sugar, tea), to 12% (processed foods, chocolates, fruit juices, biscuits above ₹100/kg MRP), to 18% (instant coffee, packaged water, some health drinks), to 28% (aerated beverages with cess) — with the rate depending on processing state, packaging type, branding status, and specific product characteristics.

The most important and most consequential distinction in food GST: the same food product can be exempt when sold fresh/loose/unbranded, and taxable when packaged and branded. Raw wheat grain is exempt; branded packaged atta is 5% GST. Fresh tomatoes are exempt; tomato ketchup is 12% GST. Raw groundnuts are exempt; refined groundnut oil is 5% GST. This processing-and-packaging distinction is what creates the most GST compliance challenges for food businesses in India.

This comprehensive guide provides the complete HSN code and GST rate reference for food products in India — covering every major food category from raw agricultural produce through finished packaged food products — with how ERP Group's GST invoicing system automates correct food product HSN billing.

Use ERP Group's Free HSN/SAC Finder → to find the correct HSN code and GST rate for any food product instantly.

Food HSN Code Framework Overview

How Food Products Are Organized in the HSN System

The Food Chapters — Section I through Section IV

Food products in the HSN system span from Chapter 01 (live animals) through Chapter 24 (tobacco). The commercially relevant food chapters for Indian businesses are:

The Two Fundamental GST Principles for Food

Principle 1 — Fresh/Raw is Generally Exempt:
Agricultural produce in its natural, unprocessed form — fresh vegetables, fresh fruits, raw grains, loose pulses, raw oilseeds, fresh meat, fresh milk — are generally exempt from GST (0% rate).

Principle 2 — Processing and Packaging Creates Taxability:
When these same food products are processed, branded, and packaged for retail sale — they become taxable at 5%, 12%, 18%, or 28% depending on the specific product and its level of processing.

The Critical Exempt vs Taxable Food Distinction

The Most Important Concept in Food GST

The Branded and Packaged Test

The GST Rate Notification uses specific language to determine when food products become taxable: "put up in unit container and bearing a registered brand name" — or in later amendments, "bearing a brand name or registered brand name."

When a food product is EXEMPT:

• Sold loose (not in sealed retail packaging)
• Without a brand name
• In bulk (sacks, open baskets, weighable quantities)

When the same food product becomes TAXABLE:

• Sold in sealed retail packaging (sealed pouches, sealed boxes, sealed bags)
• Bearing a brand name (even if not registered — a brand name printed on the pack)
• In unit containers sized for retail sale

Examples of the same product — exempt vs taxable:

For kirana store owners who manage both exempt and taxable food products, read our guide on billing software for kirana store India.

Chapter 01-05 — Animal Products

Complete HSN Reference for Dairy, Eggs, Meat, and Animal Products

Chapter 4 — Dairy Products, Eggs, Honey

Chapter 2 — Meat Products

For food and beverage companies managing complex multi-rate food portfolios, read our guide on ERP for food and beverage companies India.

Chapter 06-14 — Vegetable Products and Agricultural Produce

Complete HSN Reference for Grains, Vegetables, Fruits, and Oilseeds

Chapter 7 — Vegetables

For mandi traders who deal in fresh vegetables, read our guide on GST software for mandi traders.

Chapter 8 — Fruits and Nuts

Chapter 10 — Cereals (Grains)

For grain traders, read our guide on billing software for grain traders India.

Chapter 11 — Milled Grain Products

Chapter 7 (HSN 0713) — Pulses and Dried Legumes

For wholesalers and distributors trading in grains and pulses, read our guide on GST billing for wholesale market traders.

Chapter 9 — Coffee, Tea, Spices

Chapter 12 — Oilseeds

Chapter 15 — Edible Fats and Oils

Complete HSN Reference for Cooking Oils and Fats

Edible Vegetable Oils — All at 5% GST

Animal Fats and Derived Products

Chapter 17 — Sugar, Confectionery, and Sweeteners

Complete HSN Reference for Sugar and Sweeteners

Sugar — All Forms at 5% GST

Confectionery Products

Chapter 18 — Cocoa and Chocolate Products

Complete HSN Reference for Chocolate and Cocoa

Cocoa and Chocolate — Mostly 18% GST

Chapter 19 — Cereal Preparations and Bakery Products

Complete HSN Reference for Processed Cereal Foods

Bread, Biscuits, and Bakery — Variable Rates

Pasta, Noodles, and Extruded Products

Popcorn Note: Pre-popped packaged popcorn with salt/butter: 12% GST. Caramel popcorn: 18% GST. Unpopped popping corn sold as raw: 5% GST.

Flour Preparations and Mixes

Chapter 20 — Preserved Vegetables and Fruit Products

Complete HSN Reference for Processed and Preserved Foods

Vegetable-Based Processed Products

Fruit-Based Processed Products

Vinegar, Sauces, Condiments

Chapter 21 — Miscellaneous Food Preparations

Complete HSN Reference for Food Preparations and Beverages

Soups, Broths, and Instant Foods

Ice Cream, Frozen Desserts

Health Drinks, Protein Supplements, and Malt Products

Spice and Flavouring Products

For FMCG distributors who supply all these diverse food categories, read our guide on GST software for FMCG distributors India.

Chapter 22 — Beverages and Drinking Water

Complete HSN Reference for Beverages

Water Products — Critical Rate Differences

Non-Alcoholic Beverages

Tea and Coffee Beverages

Milk-Based Beverages

Alcoholic Beverages

Note: Alcoholic beverages for human consumption are outside India's GST framework — they are taxed by individual state governments through excise duty. Businesses trading in alcohol do not charge GST on such supplies.

Food GST Rate Quick Reference Tables

Food Products by GST Rate — Complete Summary

0% GST — Exempt Food Products

5% GST — Basic Processed Food

12% GST — Processed and Value-Added Food

18% GST — Highly Processed Food and Beverages

28% GST + 12% Compensation Cess — Aerated Beverages

Common Food HSN Classification Mistakes

The 9 Most Costly Food GST Errors

Mistake 1 — Not Differentiating Branded vs Unbranded for the Same Product

Billing loose unbranded dal at 5% (when it should be exempt) or billing fresh tomatoes at 5% (when they are exempt). Also the reverse — not charging 5% on branded packaged atta.

Prevention: ERP Group's product master maintains separate entries for "Loose Tomatoes (Exempt)" and "Packaged Tomatoes (5%)" — billing staff select the correct product, rate applies automatically.

Mistake 2 — Applying 5% on Ice Cream (Correct Rate: 18%)

A common error in kirana and general stores that stock ice cream — applying 5% (dairy rate) to ice cream. Ice cream is Chapter 21 at 18% GST, not Chapter 4 dairy at 5%.

Mistake 3 — Applying 12% on Aerated Drinks (Correct Rate: 28% + Cess)

Aerated beverages attract 28% GST plus 12% compensation cess — total effective rate of approximately 40%. Any rate below this is undercharging.

Mistake 4 — Applying 5% to Packaged Drinking Water (Correct Rate: 18%)

Packaged drinking water bottles (Bisleri, Kinley, etc.) below 20 litres attract 18% GST — not 5% like food staples.

Mistake 5 — Treating Butter Same as Ghee

Ghee is at 5% GST (HSN 0405 90). Butter is at 12% GST (HSN 0405 10). Two similar dairy fats — two different GST rates.

Mistake 6 — Applying Same Rate to All Biscuits

Biscuits have a ₹100/kg MRP threshold:

• ≤₹100/kg MRP: 5% GST

• ₹100/kg MRP: 12% GST

A biscuit distributor applying flat 5% or flat 12% to all biscuits has systematic billing errors.

Mistake 7 — Treating Instant Coffee Same as Ground Coffee

Ground/filter coffee (0901 21): 5% GST
Instant coffee (2101 11): 18% GST

Major rate difference for coffee distributors billing both product types.

Mistake 8 — Exempting Packaged Water or Health Drinks

Some distributors incorrectly exempt packaged drinking water or health drinks (Horlicks, Bournvita) — both are taxable (18% GST).

Mistake 9 — Applying 12% to Branded Atta and Rice (Correct Rate: 5%)

Some distributors confuse branded packaged food rates — branded packaged atta and rice are at 5% (not 12%).

How ERP Group Automates Food Product HSN Billing

Managing Food's Complex Multi-Rate GST in One Platform

Food businesses — whether kirana stores, FMCG distributors, food manufacturers, or restaurant chains — face the most complex GST rate environment of any commercial sector. Managing 0%, 5%, 12%, 18%, and 28% rates for hundreds or thousands of SKUs requires systematic automation.

ERP Group's Food Product HSN Management

Multi-Rate Product Master for Food Businesses

ERP Group's GST invoicing system maintains a complete food product master where every product is configured with its specific HSN code and GST rate:

• Fresh tomatoes: HSN 0702 at 0% (Exempt)
• Branded packaged rice: HSN 1006 at 5%
• Tomato ketchup: HSN 2103 at 12%
• Ice cream: HSN 2105 at 18%
• Pepsi/Coke: HSN 2202 at 28% + cess

Once configured, the correct rate applies automatically to every invoice line — zero manual rate selection, zero rate errors.

Exempt and Taxable Variants for Same Product

For products sold in both exempt form (loose/unbranded) and taxable form (branded/packaged), ERP Group maintains separate product master entries:

• "Rice — Loose" (Exempt, 0%)
• "Rice — Dawat 5kg Branded" (5% GST)

Billing staff select the correct product variant — the rate applies automatically.

Cess Calculation for Aerated Beverages

ERP Group's GST engine handles the compound tax calculation for aerated beverages — 28% GST + 12% compensation cess on the base price — automatically in the invoice total. No manual cess calculation required.

GSTR-1 Food Product HSN Summary

ERP Group generates the Table 12 HSN-wise summary from all food invoices — aggregating separately by HSN code and rate. For a kirana store selling products at 0%, 5%, 12%, and 18% — GSTR-1 Table 12 is automatically generated with correct aggregation by HSN.

Inventory Management for Food Products

ERP Group's warehouse management system manages food inventory with:

• Real-time stock levels by product
• Expiry date tracking for perishable packaged foods
• FEFO (First Expiry, First Out) dispatch for packaged food products
• Reorder alerts for fast-moving food items
• Dead stock identification for slow-moving products

POS for Food Retail (Kirana Stores)

ERP Group's POS software enables kirana store counter billing with:

• Barcode scanning for fast product identification
• Automatic multi-rate GST (from 0% to 28%) from product master
• UPI and cash payment recording
• Thermal receipt printing for customers

For kirana store billing with complex multi-rate food products, read our guide on billing software for kirana store India.

Complete Food Business Platform

Conclusion — Correct Food HSN Codes Protect Your Business and Your Compliance

The food product HSN code and GST rate landscape in India is one of the most complex regulatory environments any business must navigate — spanning from completely exempt fresh produce through five distinct rate tiers to 28% + cess aerated beverages, with the same physical product potentially exempt or taxable depending on how it is presented for sale.

The key principles for food businesses:

• Fresh and natural → Exempt: Vegetables, fruits, raw grains, raw pulses, fresh milk, fresh meat
• Branded and packaged → Taxable at 5%: Packaged atta, branded rice, packaged dal, packaged spice powders, edible oils, sugar, ghee
• Processed → 12%: Ketchup, pickles, juices, chocolate, biscuits above ₹100/kg, butter, cheese
• Highly processed/cold → 18%: Ice cream, instant coffee, health drinks, packaged water, breakfast cereals
• Aerated → 28% + Cess: Pepsi, Coke, energy drinks

Use ERP Group's Free HSN/SAC Finder → to find the correct HSN code and GST rate for any food product instantly.

ERP Group's GST invoicing system — with multi-rate food product master, exempt and taxable product variants, automatic cess calculation for aerated beverages, and GSTR-1 Table 12 auto-generation — connected to warehouse management system for food inventory and expiry, POS software for kirana counter billing, accounting software for complete books, CRM software for dealer management, and HR & Payroll software for staff compliance — is India's most comprehensive food business GST billing platform.

Book Your Free Demo — Food HSN Multi-Rate GST Billing Platform

👉 Book a Free Demo → — See ERP Group's food product multi-rate HSN billing for FMCG distributors, kirana stores, and food manufacturers.

👉 Use Free HSN/SAC Finder → — Find HSN codes and GST rates for all food products. Free and instant.

Related Tools and Guides for Food Businesses

• 🔧 HSN/SAC Finder → — Find food product HSN codes
• 🔧 Income Tax Calculator → — Food business income tax
• 🔧 TDS Calculator → — TDS on food trade payments
• 🔧 Salary Calculator → — Food industry worker payroll
• 🔧 ROI Calculator → — Food business investment returns
• 📄 Billing Software for Kirana Store India — Complete Guide
• 📄 GST Software for FMCG Distributors India — Complete Guide
• 📄 ERP for Food and Beverage Companies India — Complete Guide
• 📄 Billing Software for Grain Traders India — Complete Guide
• 📄 GST Software for Mandi Traders — Complete Guide

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