The GST rate for grocery and food items in 2026 is simpler than it used to be: after the reform that took effect on 22 September 2025, most food is either nil (fresh produce and many everyday staples) or 5% (packaged and processed items), with a smaller set at 18%. This guide gives a plain-English rate table for a kirana shop, shows how the rate appears on a real bill, and flags what actually changed — so you charge the right tax at the counter.
The new GST slabs (effective 22 September 2025)
At its 56th meeting, the GST Council collapsed the old four-slab structure (5%, 12%, 18%, 28%) into two main rates — 5% and 18% — plus a special 40% rate for a few sin and luxury goods. Essentials stay at nil (0%). The revised rates apply from 22 September 2025 (see the official recommendations on pib.gov.in).
For a shopkeeper, the practical takeaway is: your daily grocery stock now mostly falls into just two buckets — 0% or 5% — which makes billing far less fiddly than before.
GST rate for common grocery and food items
The table below covers items a typical kirana or provision store sells. Treat it as a starting point, not the last word: HSN classification and rates do change, so verify each line on gst.gov.in or with your CA before you rely on it.
| Item | Typical GST rate |
|---|---|
| Fresh vegetables & fruits | Nil (0%) |
| Fresh, pasteurised & UHT milk | Nil (0%) |
| Pre-packaged paneer / chhena | Nil (0%) |
| Indian breads — roti, paratha, chapati | Nil (0%) |
| Loose / unbranded atta, rice, pulses | Nil (0%) |
| Biscuits, namkeen, packaged snacks | 5% |
| Edible oil (all types) | 5% |
| Ghee & butter | 5% |
| Tea & coffee (processed) | 5% |
| Packaged drinking water | 5% |
| Toothpaste, toilet soap, hair oil | 5% |
| Aerated / carbonated soft drinks | 40% |
Two things worth noting. First, the packaged-vs-loose confusion has eased: items like paneer and Indian breads that once bounced between rates depending on packaging are now treated more consistently. Second, a handful of processed or premium products still sit at 18% — when in doubt, check the item’s HSN code against the current CBIC schedule (cbic.gov.in) rather than guessing.
How the rate shows up on your bill
Knowing the slab is only half the job — you also have to split it correctly. The rate you charge depends on the place of supply, not the slab:
- Same state (intra-state): split the rate into CGST + SGST, each at half.
- Different state (inter-state): charge a single IGST at the full rate.
A worked example
Meena runs a provision store in Madurai, Tamil Nadu. A regular customer, also in Tamil Nadu, buys:
- Biscuits — taxable value ₹200, GST 5%
- Refined oil (1 L) — taxable value ₹140, GST 5%
- Fresh vegetables — ₹60, GST nil
Because it’s an intra-state sale, the 5% splits into CGST 2.5% + SGST 2.5%:
- Taxable (5% items): ₹200 + ₹140 = ₹340 → CGST ₹8.50 + SGST ₹8.50 = ₹17
- Exempt items: ₹60 (no tax)
- Bill total = ₹340 + ₹17 + ₹60 = ₹417.00
If Meena instead shipped the same order to a customer in Kerala, it becomes inter-state: a single IGST 5% = ₹17 on the ₹340, and the total is still ₹417.00 — just shown as one IGST line instead of two.
Getting this split right on every bill, across a mix of 0% and 5% items, is exactly where manual billing slows down and errors creep in.
What changed, and what didn’t
- Changed: the rates — the old 12% and 28% slabs are largely gone, and several food items moved down to 0% or 5% from 22 September 2025.
- Didn’t change: the mechanics — you still need a proper tax invoice with HSN codes, the CGST/SGST-or-IGST split by place of supply, and unique, consecutive invoice numbers for the financial year. See our GST invoice format for small shops for the full field list, or the step-by-step how to make a GST bill guide.
Billing at the right rate, without the mental math
You can keep a printed rate chart at the counter, but on a busy day it’s easy to punch the wrong slab — and a wrong rate means a wrong bill and a mismatched return later.
Yojika is offline-first GST billing software built for Indian small shops. You set each item’s tax rate once; it then applies the correct CGST/SGST or IGST automatically from the place of supply, handles nil-rated items cleanly, and prints to A4, A5, or a thermal receipt printer — with invoices available in all 22 official Indian languages. Your business data stays on your own PC, not in someone’s cloud.
- See what’s included on the features page.
- Check simple, transparent pricing on the pricing page.
- Or download Yojika and try it free for 14 days.
This article is general information, not tax advice. GST rates and classifications change — confirm the current position on gst.gov.in, cbic.gov.in, or with your CA before you rely on a rate.