Yes, in India, there is no GST (0% rate) on essential fresh milk, including raw, pasteurized, and UHT (shelf-stable) milk, as of late 2025. Unpacked, unlabeled curd and buttermilk are also exempt. However, processed dairy products like butter, ghee, cheese, and milk powder typically attract a 5% GST rate.
No, fresh milk is exempt from GST. Pasteurized milk is also exempt if not sold under a brand name. What is the GST on ghee and butter? 12% GST applies when ghee and butter are sold in packaged and branded form.
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.
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.
Mother Dairy has announced a reduction in prices across milk, paneer, butter, cheese, ghee, and milkshakes, passing on the benefits of recent GST rate revisions to consumers. Milk: UHT toned milk (1L) cut from ₹77 to ₹75; UHT double-toned (450ml) from ₹33 to ₹32.
GST on pencils, sharpeners, crayons, exercise books, graph books, maps, and charts has been reduced from 12% to Nil. GST on erasers has been reduced from 5% to Nil. This reduction will make basic learning tools cheaper, especially for government schools, children and youth in rural areas.
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.
Zero-rated goods and services
Some goods and services have GST charged at 0%. These are called zero-rated supplies and usually include products or services from New Zealand that are sold overseas. Zero-rated supplies still have to be recorded on your GST returns.
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.
Key items exempted from GST:
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.
Temporary GST/HST relief will apply from December 14, 2024, to February 15, 2025. Eligible products that are ordered before December 14, 2024, but are only ready to ship on or after 00:00 Pacific Time December 14, 2024, will qualify for the tax relief, and no GST/HST will be collected.
All our prices are inclusive of GST.
Old GST on Fresh Fruits
gst on fresh fruits is 0%, meaning no GST is charged when buying bananas, apples, mangoes, etc., in their natural, unprocessed form.
GST on Water and related products @ 12%
Branded tender coconut water when put up in a container. Lemonade. Aerated water.
Since they are basic essentials, they do not attract any GST at all. You will not be able to claim any ITC on such supplies. Some examples include bread, fresh fruits, milk, curd, etc. Supplies made overseas and to Special Economic Zones (SEZs) or SEZ Developers come under the zero-rated supplies.
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.
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.
Zero-rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies.