GST on Packaged & Processed Food in India (2026): Rates & HSN
GST 2.0 cut most packaged and processed foods — namkeen, sauces, pasta, biscuits, chocolate — to 5%, kept unbranded staples exempt, and put aerated/caffeinated drinks at 40%. Here's the guide.
Part of: The Complete GST Guide for Small Business in India (2026)
GST 2.0 (effective 22 September 2025) made packaged food noticeably cheaper: most processed and packaged foods — namkeen, bhujia, sauces, pasta, chocolate and biscuits — moved to the 5% merit rate. Basic unbranded staples remain exempt, while aerated and caffeinated drinks sit at the 40% demerit rate. This guide covers the rates and HSN codes.
Quick answer: most packaged/processed foods are 5% GST; unbranded staples are exempt (0%); aerated & caffeinated drinks are 40%.
GST rates & HSN codes
| Item | HSN | GST rate |
|---|---|---|
| Namkeen, bhujia, savoury snacks | 2106 | 5% |
| Sauces, ketchup, pasta, noodles | 2103 / 1902 | 5% |
| Biscuits & bakery | 1905 | 5% |
| Chocolate & cocoa preparations | 1806 | 5% |
| Unbranded/loose food staples | — | 0% (exempt) |
| Aerated & caffeinated / sugary drinks | 2202 | 40% |
For grocery & FMCG retailers
- Most branded packaged snacks and foods are now 5% — update masters that still show 12% or 18%.
- Unbranded, non-pre-packaged staples stay exempt; branding/pre-packaging changes the rate.
- Keep aerated and caffeinated drinks at 40% — a distinct demerit category.
General information only, not tax advice. Food GST depends on branding, packaging and exact classification and can change — verify before billing. Last reviewed: September 2026.
