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GST Return Filing & Invoicing
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GST Rates on Fruits and Vegetables

With the introduction of GST Rates of fruits and vegetables it is evident that to enable better flow of such supply chain mechanism the fresh fruits and vegetables have been exempted with further processed and frozen fruits and vegetables taxed.

NIL Rated under GST

The following have been exempted under GST

  • Fresh or chilled vegetables, roots and tubers like potatoes, tomatoes, onion, garlic, cabbage, cauliflower, carrot, beetroots etc. have been exempted from GST.
  • Fresh fruits like coconut, apples, cherries, peaches, bananas, pineapples, guavas, mangoes, citrus fruits such as oranges, mandarins, grapefruit etc. have been exempted from GST
  • Fresh nuts such as Almonds, Hazelnuts or filberts, walnuts, Chestnuts, Pistachios, Macadamia nuts, Kola nuts, Areca nuts

Fresh and/ or chilled fruits and vegetables have been made exempted from tax under GST which is in line with the existing different VAT laws under different states. Hence, fresh unprocessed goods purchased directly from agriculturist or dealer or retailer will be exempt.

Taxed @ 5%

  • Jari booti and dry flower like herb, dry plant and roots, bark.
  • Frozen vegetables and fruits whether uncooked or cooked by boiling in water or added sugar or sweeting matter.
  • Provisionally preserved vegetables, fruits and nuts but unsuitable for immediate consumption in that condition.
  • Other frozen or dried vegetables
  • Dried areca nuts, whether shelled or peeled

Taxed @ 12%

  • Dry Fruits fresh or dried, shelled or peeled
  • Fruits and vegetable juices

Dry fruits have been taxed at a rate of 12 % which was earlier taxed at a rate of 5% leading to higher prices for dry fruits purchases.

Taxed @ 18%

  • Fruits, vegetables, nuts and other plants preserved by vinegar or acetic acid or sugar
  • Tomatoes, mushrooms or other vegetables preserved by other means
  • Fruit jam, jellies, pastes or nut puree

Here goods taxed at a rate of 18% which were earlier taxed under various VAT Acts at a rate of 5%, this again shows a price hike for end user consumers.

Conclusion

With the declaration of GST rates of fruits and vegetables, fresh and unprocessed fruits and vegetable have been exempted which is a positive impact of GST for agricultural industry. However higher rates of 12% and 18% have been introduced for dry fruits and preparation from fruits and vegetables which were taxed at a rate of 5% earlier leading to a negative impact on FMCG Companies.

The overall GST rates will impact majorly the end consumers as the goods which was earlier taxed at a rate of 5% will now be taxed at 12% or 18% leading to a price increase and consumption decrease.

To know more about rates applicable on different goods and services click here.

 

 

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