- By Aditi Priya Singh
- Mon, 22 Sep 2025 01:32 PM (IST)
- Source:JND
List of Food Items with Reduced GST: The Indian government officially announced GST Reform 2.0, which will significantly alter the Goods and Services Tax on many essential items, including food items. Prime Minister Narendra Modi and Finance Minister Nirmala Sitaraman announced about GST reform in early September 2025. The updated GST rates will take effect nationwide on September 22, 2025, and they will have a direct effect on packaged foods and daily necessities. The goal of this reform is to lower the cost of necessities while maintaining an equitable tax system for both businesses and consumers.
These Food Items Reduced To 0% GST
Many products, including milk, paneer, roti, khakhra and paratha, will now be completely tax-free under the new regulations since they fall under the 0% GST category. Similarly, a variety of other food items, including cheese, chocolate, ice cream, jams, juices, biscuits, namkeens, pasta, mineral water, and meat products, will only be subject to 5% GST, which is less than the previous rates.
It is expected that people will benefit from the government's decision to lower the monthly grocery bills by revising the GST rates on food items. Additionally, it reduces the tax system for vendors and small enterprises that sell daily consumables. Customers will be enjoying their favourite foods at more affordable prices as a result of this change, and traders will gain from a more transparent and uniform tax system. With the implementation of the new GST reform, India's food economy is moving closer to striking a balance between affordability and revenue collection.
Complete List of Food Items With Reduced GST Rates
Let’s take a look at the complete list of food items with old and new reduced GST rates.
| Food Item | Explanation / Examples | Old GST Rate | New GST Rate |
|---|---|---|---|
| UHT milk | Long-life milk processed at ultra-high temperatures | 5% | 0% |
| Chena or paneer (pre-packaged) | Packaged paneer or chena is sold in labelled packs | 5% | 0% |
| Pizza bread | Ready-to-eat pizza base | 5% | 0% |
| Khakhra, chapati, roti | Every day, Indian breads | 5% | 0% |
| Paratha, parotta, Indian breads | Layered/stuffed breads like paratha/parotta | 5% | 0% |
| Condensed milk | Thick, sweetened preserved milk | 12% | 5% |
| Butter, ghee, butter oil, dairy spreads | Dairy fats & spreads | 12% | 5% |
| Cheese | All varieties of cheese | 12% | 5% |
| Dried nuts | Almonds, pistachios, hazelnuts, Brazil nuts | 12% | 5% |
| Dried fruits | Dates, figs, guavas, mango slices, pineapples | 12% | 5% |
| Dried citrus fruits | Oranges, lemons, grapefruit, limes | 12% | 5% |
| Mixed dried fruits (excl. tamarind) | Dry fruit assortments (no tamarind) | 12% | 5% |
| Malt | Roasted/raw malt used in foods/drinks | 12% | 5% |
| Starches, inulin | Used in cooking & baking | 12% | 5% |
| Refined sugar (with flavour/colour), cubes | Flavoured sugar, sugar cubes | 18% | 5% |
| Cocoa butter, fat, oil | From cocoa beans | 18% | 5% |
| Sugar confectionery | Candies, sweets | 18% | 5% |
| Cocoa powder (no sugar) | Pure cocoa powder | 18% | 5% |
| Chocolates & cocoa preparations | Chocolate products | 18% | 5% |
| Corn flakes, bulgar wheat, FRK | Breakfast cereals, fortified rice | 18% | 5% |
| Pasta (macaroni, noodles, couscous) | Varieties of pasta | 18% | 5% |
| Pastry, cakes, biscuits | Baked sweets (excluding bread) | 18% | 5% |
| Pickled vegetables/fruits | Preserved in vinegar/acetic acid | 18% | 5% |
| Preserved mushrooms & truffles | Not in vinegar | 18% | 5% |
| Preserved tomatoes | Tomato puree, paste (no vinegar) | 18% | 5% |
| Candied fruits/nuts | Crystallised/glacé items | 18% | 5% |
| Jams, jellies, marmalades, fruit spreads | Cooked fruit/nut spreads | 18% | 5% |
| Tender coconut water (packaged) | Ready-to-drink, labelled | 18% | 5% |
| Ice cream & edible ice | Frozen desserts | 18% | 5% |
| Soya bari, mungodi, batters | Protein substitutes, instant mixes | 12% | 5% |
| Namkeens, bhujia, mixtures | Packaged snacks (except roasted gram) | 12% | 5% |
| Prepared/preserved meat, insects | Processed animal products | 18% | 5% |
| Sausages & meat products | Meat preparations | 18% | 5% |
| Preserved fish, caviar | Canned fish, substitutes | 18% | 5% |
| Mineral & aerated water (plain) | Packaged plain mineral or soda water | 18% | 5% |
| Plant-based milk drinks | Soya, almond, oat milk | 18% | 5% |
| Fruit juice drinks (non-carbonated) | Juice-based, not fizzy | 18% | 5% |
| Milk-based beverages | Milk-based drinks | 18% | 5% |
| Yeasts & baking powders | Used in baking/fermentation | 18% | 5% |
| Roasted chicory, coffee substitutes | Coffee alternatives | 18% | 5% |
| Soups, broths, food preparations | Soup powders, mixes | 18% | 5% |
Source: Press Information Bureau (PIB)
The GST Reform 2.0 is a big step towards making essential and packaged food items more affordable for everyone. By reducing the tax rates on everyday items like milk, bread, paneer, chocolates, juices, and more, the government has given direct relief to households and small businesses. This change not only helps people save money on their daily groceries but also ensures fair and transparent pricing. Overall, the new GST rates are expected to boost consumption, reduce financial stress on families and create a positive impact on the food industry in India.