FMCG SectorEssentials Exempt

GST on FMCG — Food, Personal Care, Beverages & Household

Complete guide to GST on FMCG products: packaged food (5%), personal care (18%), aerated drinks (28%+12% cess), dairy products, household cleaners, tobacco taxation, and the landmark sanitary napkin exemption.

5%-18%

Food Products

18%

Personal Care

18%

Household Items

12%-28%

Beverages

5%

Packaged Food

5%

Branded Cereals

28%+12%

Aerated Drinks

28%+Cess

Tobacco Products

FMCG GST Categories

Packaged Food & Snacks

Branded and packaged food items at 5%: namkeens, chips, biscuits (if ≤₹100/kg: 5%), branded rice/atta/pulses. Unbranded staples (loose atta, rice, dal): exempt. Pre-packaged and labelled items (>25kg) brought under 5% GST from July 2022. Ready-to-eat meals: 18%. Frozen food: 18%. Baby food: 18%.

Personal Care & Beauty

Toothpaste, soap, shampoo, hair oil: 18%. Deodorants, perfumes: 28%. Skincare, cosmetics: 28%. Shaving products: 18%. Sanitary napkins: exempt (reduced from 12% in 2018 — landmark decision). Diapers: 12%. Razors: 18%. Sunscreen: 18%. Essential oils: 18%.

Beverages — Varied Rates

Aerated drinks (cola, soda): 28% + 12% compensation cess = 40% total. Fruit juices (packaged): 12%. Flavored milk: 12%. Tea/coffee (packaged): 5%. Mineral/packaged water (≤20L): 18%. Buttermilk: exempt. Coconut water (packaged): 12%. Energy drinks: 28% + 12% cess. Instant coffee: 5%.

Household & Cleaning

Detergent powder/liquid: 18%. Dishwash: 18%. Floor cleaners: 18%. Tissue paper: 18%. Incense sticks (agarbatti): 5%. Matchboxes: 5%. Brooms: 5%. Candles: 5%. Mosquito repellents: 18%. Air fresheners: 28%. Plastic containers (household): 18%. Steel utensils: 12%.

Dairy & Bakery Products

Fresh milk: exempt. Curd, lassi, buttermilk: exempt. Paneer: exempt (unbranded), 5% (branded/packaged). Cheese: 12%. Butter: 12%. Ghee: 12%. Bread: exempt (unbranded), 5% (branded). Cakes, pastries: 18%. Biscuits: 18% (if >₹100/kg), 5% (if ≤₹100/kg). Ice cream: 18%.

Tobacco & Pan Masala

Among the highest-taxed FMCG: Cigarettes 28% + specific cess (₹440-₹4,170 per 1000 sticks depending on length/filter). Bidis: 28% + 5% cess. Pan masala with tobacco (gutkha): 28% + 160% ad valorem cess. Pan masala without tobacco: 28% + cess. Chewing tobacco: 28% + specific cess rates.

FMCG GST Rate Table

ProductHSNGST RateNotes
Rice, wheat, atta (loose/unbranded)1006/1001ExemptNot pre-packaged & labelled
Branded cereals/pulses (packaged)1006/07135%Pre-packaged & labelled
Sugar17015%All forms
Edible oil (mustard, sunflower)1512/15145%All cooking oils
Packaged snacks, namkeen210612%Put up in unit container
Toothpaste, soap, shampoo3306/340118%Personal care standard
Detergent, dishwash340218%Household cleaning
Aerated drinks (cola, soda)220228%+12%Total effective: 40%
Fruit juice (packaged)200912%100% juice and drinks
Ice cream210518%All varieties
Cigarettes240228%+cessSpecific cess per stick
Sanitary napkins9619ExemptReduced from 12% in 2018

Frequently Asked Questions

What is the GST rate on packaged food items?
Pre-packaged and labelled food items (cereals, pulses, flour, rice) attract 5% GST since July 2022. Loose/unbranded staples remain exempt. Processed foods like ready-to-eat meals attract 18%. Snacks (namkeen, chips) in unit containers: 12%. Biscuits ≤₹100/kg: 5%, above: 18%. Fresh fruits, vegetables, milk: always exempt.
Why are aerated drinks taxed at 40%?
Aerated drinks (cola, soda, energy drinks) are classified as 'demerit goods' — unhealthy products the government wants to discourage. They attract 28% GST plus 12% compensation cess, totaling 40%. This is among the highest FMCG tax rates. The cess funds state compensation for revenue loss during GST transition. Industry has repeatedly asked for reduction.
Are sanitary napkins taxable under GST?
No — sanitary napkins were made EXEMPT (0%) from July 2018, following widespread public demand. Initially taxed at 12% when GST launched (July 2017), the 'Period Tax' campaign led the GST Council to remove the tax entirely in the 28th meeting. This applies to all menstrual hygiene products including pads, tampons, and menstrual cups.
How does GST apply to dairy products?
Fresh/unprocessed dairy: exempt — milk, curd, lassi, buttermilk, paneer (unbranded). Processed dairy: butter 12%, ghee 12%, cheese 12%, flavoured milk 12%, ice cream 18%, milk-based drinks 12%. UHT milk: 5%. The distinction is between fresh/unprocessed (exempt) and processed/value-added (taxed at varying rates).

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