In Australia, food that is not GST-free (i.e., taxable) generally includes prepared meals, takeaway hot food, confectionery, savory snacks, and soft drinks. Specific examples include hot chicken, pizza, pies, chips, ice cream, chocolate, potato chips, soft drinks, and restaurant meals.
Examples of GST-free foods
cooking ingredients, such as flour, sugar and baking mixes that don't contain any taxable ingredients. dry preparations marketed for the purpose of flavouring milk. fats and oils marketed for culinary purposes. unflavoured milk, cream, cheese and eggs.
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.
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.
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.
California
Fresh milk, UHT milk, and all un-packaged or loose dairy products (like curd, lassi, buttermilk, and paneer) are exempt from GST (0%).
List of exempted goods under GST in India:
Charging GST Correctly: A Breakdown of Your Sales
Barista-Made Drinks: You must charge 10% GST on all hot and cold drinks prepared by your staff. This includes every coffee, tea, hot chocolate, and chai you sell.
GST-Free Items:
Eggs and milk. Bread without filling or toppings. Rice, pasta, and plain cereals.
All unprocessed foods for human consumption, including raw meat and fish, fruit and vegetables, cereals, nuts, pulses and culinary herbs are zero rated.
All our prices are inclusive of GST.
GST on fresh vegetables is 0% unless they are branded and packaged. Frozen vegetables attract 5% GST if branded. GST on dehydrated vegetables is typically 5%, but it may go higher if mixed with other ingredients.
Fresh milk, curd, lassi, paneer (unbranded) Unbranded wheat, rice, pulses, vegetables, fruits Fresh fish, meat, eggs Unbranded honey, coconut, coconut water Unbranded dry fruits and edible oils Simple understanding: This is a basic food of daily use, hence the government has not imposed GST on it.
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.
Customers do not pay GST on goods and services that are GST‑free such as basic food, many medical and health services, some education courses, childcare, certain medical aids, and exports.
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.
The GST/HST break includes certain qualifying goods, such as:
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.