Fresh, unprocessed eggs (in-shell) are generally exempt from GST (0% rate) as they are classified as essential, unprocessed food products. However, processed, powdered, or specialized egg products may attract a 5% GST rate, depending on packaging and usage.
Fresh eggs are exempt from GST (0%) under Chapter 4, as they are classified as unprocessed food products.
Key Takeaways
Generally, basic food items like fresh fruit, vegetables, meat, bread, and milk are GST-free. However, foods that are prepared, cooked, or consumed on the premises, such as meals at restaurants or takeaway hot food, are typically taxable.
From September 22, 2025, fresh and pasteurised milk remain fully exempt from GST. Pre-packaged items such as UHT milk, paneer, and curd are also exempt, benefiting consumers with zero tax on these products. However, dairy products like butter, ghee, cheese, and similar items attract a reduced GST rate of 5%.
Generally, basic foodstuffs are GST-free, while prepared meals, snacks, and beverages are taxable. The ATO's detailed GST-free food list outlines three broad categories: Unprocessed or minimally processed foods: This includes fresh fruits and vegetables, meat, poultry, fish, eggs, and milk.
Harmonized System Code – HS Code Heading 0407: BIRDS EGGS, IN SHELL, FRESH, PRESERVED OR COOKED.
Examples of food and beverages that are zero-rated as basic groceries under section 1 of Part III of Schedule VI include fresh, frozen, canned and vacuum sealed fruits and vegetables, breakfast cereals, most milk products, fresh meat, poultry and fish, eggs and coffee beans.
GST on Water and related products @ 12%
Branded tender coconut water when put up in a container. Lemonade. Aerated water.
California
By zero rating it is meant that the entire value chain of the supply is exempt from tax. This means that in case of zero rating, not only is the output exempt from payment of tax, there is no bar on taking/availing credit of taxes paid on the input side for making/providing the output supply.
Fresh fruits, fresh milk, curd, bread, etc. Exports and supplies made to SEZ units or SEZ developers, of both goods and services. Grains, salt, jaggery, etc. Alcohol used for human consumption, natural gas, petrol and its products, etc.
There is no GST on fresh or pasteurized milk, butter milk, curd, chena or paneer, and non-vegetarian items like eggs, chicken, fresh meat, and fresh or chilled fish. Fruits, vegetables, as well as unit container-packed frozen branded vegetables (uncooked or steamed) are also exempt.
Unbranded honey is exempt (0%), while packaged and labeled honey is taxed at 5% GST. What is the HSN code for honey? The HSN code is 0409 for natural honey.
GST issues registers
This includes food for consumption on premises from which it is supplied and hot take-away food. Therefore, chicken will be subject to GST when supplied hot.
The 40% GST is now a single consolidated rate for sugar-added, flavoured, or carbonated drinks, including cola, lemonade, and fruit-based fizzy beverages. The previous 12% compensation cess has been removed.
Fresh fruits and vegetables remain GST exempt.
Many dried, frozen, and preserved fruits and vegetables are now taxed at a simple 5% (earlier 12/18%). Dried nuts, dried fruits, and select packaged produce shifted to 5%.
Fresh milk and pasteurized milk are fully exempt from GST. Further, milk products like curd, lassi, buttermilk, and paneer also are exempt from GST if sold in form apart from those pre-packaged and labeled.
Unbranded and unpackaged food items such as cereals, pulses, and fresh vegetables are exempt from GST. In contrast, branded and packaged food products attract a 5% or 12% GST, depending on the item and branding status—impacting the applicable food GST rate.
The plant code appears as a four-digit number, often preceded by “P-” (such as P-1234). This identifies the USDA-inspected facility where eggs were processed, graded, and packaged.
The gst rate on ghee is: 5% (uniform for both branded and unbranded products)
Label Requirements