Fresh milk and pasteurized milk (including in pouch) are exempt from GST (0%) in India to keep them affordable. As of late 2025, other items like UHT milk and packaged paneer are also exempt (0% GST), while items like butter, ghee, and cheese attract a 5% GST rate.
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%.
The following are examples of supplies taxable at 0% (zero‑rated): basic groceries such as milk, bread, and vegetables.
GST-Free Items:
Fresh fruits and vegetables. Raw meat, poultry, and seafood. Eggs and milk.
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.
GST rates on milk, paneer, curd, and dairy products
Earlier, some of these items were taxed at 12% or 18%, but now they fall under the 5% or even 0% (exempt) category. This change is meant to encourage more consumption and give some financial relief to families.
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.
Fresh eggs are exempt from GST (0%) under Chapter 4, as they are classified as unprocessed food products. However, processed or powdered eggs may attract 5% GST, depending on their use and packaging.
GST Rates For Honey In India
Branded/Packaged Natural Honey – 5% GST. Honey With Additives/Flavors (e.g., ginger, lemon) – 12% GST.
Certain goods and services are exempt from GST due to their essential nature. This exemption applies based on the type of supply, not the supplier. Example: Healthcare services, educational services, and public utility services (e.g., water supply) are exempt from GST.
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.
No, fresh milk is exempt from GST. Pasteurized milk is also exempt if not sold under a brand name. 12% GST applies when ghee and butter are sold in packaged and branded form. Branded versions attract 5% GST.
GST on plastic water bottles is 18%, while steel or glass bottles are usually taxed at 12%. Insulated bottles like flasks and thermoses attract 18% GST. Packaged water bottles are taxed at 18% under HSN 2202.
The tea powder GST rate is 5% for packaged and 0% for loose/unbranded powder. GST on tea leaves is 0% if sold loose and unbranded, 5% if packaged. Branded green tea is taxed at 5%, like other packaged teas.
Key Categories of Goods under 40% GST Slab
Consumers of 40% gst items- “sin” goods: tobacco, pan masala, sugary drinks, premium beverages etc. will face higher GST.
The GST rate on milk and dairy products now exempts essentials — fresh milk, pasteurized milk, UHT milk, paneer, and curd all attract 0% GST, while value-added items like skimmed milk powder, ghee, butter, cheese, and other packaged dairy products fall under the 5% slab.
Supplies that have a declared rate of 0% GST. Example: Salt, grains, jaggery etc. Supplies are taxable but do not attract GST, for which ITC cannot be claimed. Example: Fresh milk, Fresh fruits, Curd, Bread etc.
Basic raw agricultural products, such as unroasted coffee beans or unprocessed tea leaves are exempt from GST (0% tax slab). Other forms like packaged, flavoured, or instant varieties attract a higher GST rate of 5%, 12%, or even 18% depending on their classification.
GST Tax Rate: 18%