GST on Namkeen - Namkeen & Savouries HSN Code and GST Rate

GST on namkeen or savoury items, such as fruit & vegetable chips, bujias, snack foods, etc., are charged a CGST of 6%, SGST of 6%, or IGST of 12%. On the other hand, non-branded namkeen is charged GST at 5%. 

In the following sections, let’s discuss the namkeen GST rate, scope, and HSN code.

Also, please note that in this article, we’re assuming that Namkeen is made using the following ingredients – gram pulse flour, refined edible oil, moongfali dana, pulses, tepary bean flour, spices, etc.

Scope of taxation of GST on Namkeen

Namkeen manufacturers with a registered brand name are liable to pay a GST of 12% on every sale. However, those with unregistered brand names are charged a GST rate of 5%. 

A manufacturer claiming to have an unregistered brand name has no enforceable right or actionable claim on its brand name. One can also voluntarily forgo their brand name. All they have to do is file an affidavit with the jurisdictional commissioner of Central Tax. 

However, to avoid paying 12% GST on namkeen, the manufacturers have to meet the following conditions:

• Print a disclaimer on their product containers/packaging. This disclaimer should mention that the manufacturer has voluntarily foregone its actionable claim or enforceable right on the brand. 
• It also means their retail pouches or wholesale packs should not have any trademark on registered brand names, symbols, logos, or any other information indicating the product belongs to them. 

What is a brand name according to the law?

As per Section 9 of the CGST Act, a brand name is a name or a mark, such label, symbol, signature, writing, or invented word, used to describe products. These elements are used to indicate a connection in the course of trade between the product and an entity. In this case, the entity is an individual using a name that may or may not define that person's identity. 

The brand names should be registered as on 15th May 2017 under the following laws: 

• Trade Marks Act, 1999, whether or not the brand name is later deregistered
• Copyright Act, 1957 
• Under any law that is in force in any other country. 

Are FSSAI guidelines considered a part of a brand name?

Would the statutory requirements mandated by FSSAI, such as mentioning the name and registered address of the manufacturer, be connoted as a brand name? 

As per Rule 6 of the Food Safety and Standards Regulations, 2011, the ‘details of manufacturer’ are mandatory on the food package. Section 18 of the Food Safety and Standards Act, 2006 also states that without such details, no one can manufacture, distribute, sell, or expose for sale packaged food products that are not marked as specified by regulations.

So long as the manufacturer does not use the registered brand name, registered trademark, or registered symbol/logo on the product's packaging, they can add ‘details of manufacturer’ and use the concessional GST rate on namkeen.

GST on namkeen/savouries bearing someone else’s brand name

As per sub-section (1) of Section 5A of the Central Excise Act, SSI exemption is not applicable on goods bearing a brand or trade name of someone else. This goes whether or not the brand is registered. Small Scale Industry or SSI exemption is a relief given to small-scale industries under the Central Excise law. However, such exemptions do not apply to all goods. 

So, even if the manufacturer uses the name of some other company—even for indicating a connection between product and company—they will have to pay a GST on namkeen of 12%.

HSN code and GST on namkeen and savouries 

FAQs on GST on Namkeen Products

Is GST applicable on food?

Yes, GST applies to food and can be 5%, 12%, or 18%, depending on food items. For example, while GST on fresh, chilled, or frozen vegetables is nil, dried vegetables (packaged and labelled) are levied 5% GST. At the same time, dried leguminous vegetables, besides those pre-packaged and labelled, are not charged any tax. But those that are pre-packaged and labelled are levied a 5% tax. Other food items, such as fruits, nuts, and edible plant parts preserved using vinegar, are taxed at 12%. Chocolate and other food containing cocoa are taxed at 18%. 

What is the GST on namkeen without onion and garlic?

The rate may vary depending on whether the manufacturer of onion- and garlic-free namkeen operates under a registered or unregistered brand. If the manufacturer does not have a registered brand name, they are levied 5% GST on namkeen; otherwise, the GST is 12%. 

Does a wholesaler of namkeen snacks have to pay GST? 

GST levy depends on whether the wholesaler of namkeen snacks has a registered brand. If yes, they have to pay 12% GST on namkeen; otherwise, they produce a 5% tax. Namkeen snacks may include the following items — fruit & vegetable chips, bujias, and snack foods.