Foreword
The 56th GST Council Meeting, convened on 3rd September 2025, announced a major rationalisation of GST rates across multiple sectors. Among these, the Food & Beverages sector has witnessed the most extensive set of revisions. By aligning tax slabs with consumption patterns, the Council has sought to improve household affordability, create uniformity for FMCG businesses, and discourage high-sugar and high-caffeine consumption through higher taxation.
Food & Beverages Sector – Detailed GST Changes
5% → Nil
| HSN/Chapter | Description | Old Rate | New Rate |
|---|---|---|---|
| 0401 | UHT milk | 5% | Nil |
| 0406 | Paneer (pre-packaged & labelled) | 5% | Nil |
| 1905 | Pizza bread | 5% | Nil |
| 1905/2106 | Khakhra, chapathi, roti | 5% | Nil |
18% → Nil
| HSN/Chapter | Description | Old Rate | New Rate |
|---|---|---|---|
| 2106 | Paratha, parotta & other Indian breads | 18% | Nil |
12% → 5%
| HSN/Chapter | Description | Old Rate | New Rate |
|---|---|---|---|
| 0402 91 10 / 0402 99 20 | Condensed milk | 12% | 5% |
| 0405 | Butter and fats (ghee, butter oil etc.) | 12% | 5% |
| 0406 | Cheese | 12% | 5% |
| 0801 | Brazil nuts dried | 12% | 5% |
| 0802 | Other nuts (almonds, hazelnuts, pistachios etc.) | 12% | 5% |
| 0804 | Dates, figs, pineapples, mangoes, mangosteens dried | 12% | 5% |
| 0805 | Citrus fruit dried | 12% | 5% |
| 0813 | Other dried fruits, nut mixtures | 12% | 5% |
| 1108 | Starches; inulin | 12% | 5% |
| 1501 | Pig fats, poultry fats | 12% | 5% |
| 1502 | Fats of bovine, sheep, goat | 12% | 5% |
| 1503 | Lard stearin, oils, tallow oil | 12% | 5% |
| 1504 | Fats & oils of fish or marine mammals | 12% | 5% |
| 1505 | Wool grease, lanolin | 12% | 5% |
| 1506 | Other animal fats & oils | 12% | 5% |
| 1516 | Animal/microbial hydrogenated fats | 12% | 5% |
| 1517 | Edible mixtures of animal/microbial fats | 12% | 5% |
| 1518 | Modified/oxidised fats or oils | 12% | 5% |
| 1601 | Sausages & similar meat products | 12% | 5% |
| 1602 | Prepared/preserved meat & offal | 12% | 5% |
| 1603 | Extracts/juices of meat, fish | 12% | 5% |
| 1604 | Prepared/preserved fish, caviar | 12% | 5% |
| 1605 | Prepared/preserved crustaceans/molluscs | 12% | 5% |
| 1701 | Refined sugar with flavouring/colouring | 12% | 5% |
| 1704 | Sugar boiled confectionery | 12% | 5% |
| 1902 | Pasta, couscous | 12% | 5% |
| 1905 90 30 | Extruded savoury snacks | 12% | 5% |
| 2001-2009 | Preserved vegetables, fruits, jams, juices | 12% | 5% |
| 2101 30 | Roasted chicory & coffee substitutes | 12% | 5% |
| 2102 | Yeasts, baking powders | 12% | 5% |
| 2103 | Sauces, condiments, curry paste, dressings | 12% | 5% |
| 2106 | Texturised veg proteins, batters | 12% | 5% |
| 2106 90 | Namkeen, bhujia, mixtures (labelled) | 12% | 5% |
| 2106 90 91 | Diabetic foods | 12% | 5% |
| 2201 | Drinking water in 20L bottles | 12% | 5% |
| 2202 99 10 | Soya milk drinks | 12% | 5% |
| 2202 99 20 | Fruit pulp/juice based drinks | 12% | 5% |
| 2202 99 30 | Beverages containing milk | 12% | 5% |
18% → 5%
| HSN/Chapter | Description | Old Rate | New Rate |
|---|---|---|---|
| 1107 | Malt, roasted or not | 18% | 5% |
| 1302 | Vegetable saps & extracts (excl. tamarind kernel) | 18% | 5% |
| 1517 10 | Margarine, Linoxyn | 18% | 5% |
| 1520 00 00 | Glycerol crude, waters, lyes | 18% | 5% |
| 1521 | Vegetable waxes, beeswax, spermaceti | 18% | 5% |
| 1522 | Degras, residues of fats/waxes | 18% | 5% |
| 1702 | Other sugars, syrups, caramel | 18% | 5% |
| 1704 | Sugar confectionery (excl. traditional items) | 18% | 5% |
| 1804 | Cocoa butter, fat, oil | 18% | 5% |
| 1805 | Cocoa powder | 18% | 5% |
| 1806 | Chocolates | 18% | 5% |
| 1901 | Malt extract, food prep | 18% | 5% |
| 1904 | Corn flakes, bulgar wheat, cereal flakes | 18% | 5% |
| 1905 | Pastry, cakes, biscuits | 18% | 5% |
| 2101 | Coffee & tea extracts | 18% | 5% |
| 2104 | Soups, broths, homogenised food prep | 18% | 5% |
| 2105 | Ice cream | 18% | 5% |
| 2106 | Other food preparations | 18% | 5% |
| 2201 | Waters (natural/mineral/aerated) | 18% | 5% |
| 2202 99 | Plant-based milk drinks | 18% | 5% |
| 3503 | Gelatin, isinglass, animal origin glues | 18% | 5% |
| 3505 | Modified starches, glues based on starch | 18% | 5% |
18% → 40%
| HSN/Chapter | Description | Old Rate | New Rate |
|---|---|---|---|
| 2202 91 00 / 2202 99 | Other non-alcoholic beverages | 18% | 40% |
28% → 40%
| HSN/Chapter | Description | Old Rate | New Rate |
|---|---|---|---|
| 2106 90 20 | Pan masala | 28% | 40% |
| 2202 10 | Aerated waters, sweetened beverages | 28% | 40% |
| 2202 99 90 | Caffeinated beverages | 28% | 40% |
| 2202 | Carbonated fruit beverages | 28% | 40% |
Business Impact
- Households: Exemption on daily essentials such as milk, paneer, roti, and pizza bread reduces effective household costs.
- FMCG Companies: Large share of processed foods brought to 5% requires immediate revision of pricing, billing, and ERP systems.
- Distributors & Retailers: Contracts and invoicing to be updated as the new rates take effect from 22 September 2025.
- Sugary Beverages & Pan Masala: Higher GST at 40% will directly reduce demand, forcing companies to reconsider product strategies.
- Export & Import Players: Uniform 5% slab on processed staples provides greater predictability in global trade compliance.
📌 In summary, the Council has created a three-tier system for food:
- Nil-rated essentials for affordability,
- 5% processed staples to support demand,
- 40% sin goods to discourage unhealthy choices.
This sectoral restructuring requires businesses to act swiftly on pricing, supply chain contracts, and system updates to remain compliant and competitive.
LinkedIn Link : RMPS Profile
This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
Published on: September 10, 2025