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Published on 10 April 2025

Understanding GST on Pre-Packaged and Labeled Edible Products

Overview of GST on Pre-Packaged and Labelled Items

This blog provides a detailed yet simplified understanding of Goods and Services Tax (GST) applicable to pre-packaged and labelled edible products.

GST Structure Before and After 18.07.2022

Prior to 18.07.2022

Before July 18, 2022, edible items packaged in unit containers that featured either registered or unregistered brand names were taxable at:

  • 5% GST, except for:
    • Tender coconut
    • Namkeen, bhujiya, and mixture chabena, which were taxed at 12%.

Changes After 18.07.2022

With the introduction of Notifications 6/2022 and 7/2022 effective from July 18, 2022, edible items became taxable at 5% or 12% if classified as "pre-packaged and labelled." This classification means that the items must be placed in packaging (sealed or unsealed) containing a predetermined quantity.

Definition of "Pre-packaged"

A product is deemed "pre-packaged" if it is placed in a package without the purchaser’s presence. Additionally, the packaging or label must comply with the Legal Metrology Act requirements for GST to be applicable.

Retail Sale Package

According to Section 18 of the Legal Metrology Act 2009, retail sale packages must display the following declarations, as mandated by Rule 6 in conjunction with Rule 3 of the Legal Metrology (Packaged Commodities) Rules 2011:

  • Name and address of the manufacturer
  • Name of the commodity
  • Quantity
  • Date of manufacture
  • Retail sale price

Exceptions to Declaration Requirements

No declaration is necessary for certain packages:

  1. Commodities exceeding 25 kg or 25 liters.
  2. Packages meant for industrial or institutional consumers, including:
    • Transportation services
    • Air, rail, or hotel services
    • Hospitals
    • Other institutions purchasing directly from manufacturers.

Wholesale Packages

Rule 24 of the Legal Metrology Rules 2011 mandates that every wholesale package must display the requisite declarations, making them subject to GST. Wholesale packages are designed for sale, distribution, or delivery to intermediaries and consumers and can be categorized as:

  • Comprised of several retail packages, not meant for direct consumer sale
  • Containing commodities in bulk for sale to consumers in smaller quantities

This indicates that packages containing ten or more labeled retail packages qualify as wholesale packages.

Exemptions Under Rule 26 of Legal Metrology Rules

The following categories are exempt from declaration requirements:

  1. Commodities weighing or measuring 10 grams or 10 milliliters or less.
  2. Fast food items packaged by restaurants and hotels.
  3. Specified drug formulations.
  4. Agricultural produce packaged above 50 kilograms.

Summary

In conclusion:

  • Edible items weighing 10 grams or 10 milliliters or less, and those exceeding 25 kilograms or 25 liters, are exempt from label and declaration requirements under GST.
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