GST Rates of 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 systems, the fresh fruits and vegetables have been exempted with further processed, frozen fruits and vegetables taxed.

The HSN codes relevant are 0602, 0709, 0805, 0810, etc.

Items classified as 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, and areca nuts.
• 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.
   
• Dried vegetables, and dried tamarind.

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

Items taxed at 5%

• Jari booti and dry flowers like herbs, dry plants, bark and roots.
• Other frozen or dried vegetables.
• Dried areca nuts, whether shelled or peeled.

Items taxed at 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.

Items taxed at 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.

To summarise the GST rates levied on fruits and vegetables on some conditions, fresh and unprocessed fruits and vegetables 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 rate impacts majorly the end consumers as the goods which were earlier taxed at a rate of 5% will now be taxed at 12% or 18% leading to a price increase and consumption decrease.

Visit our related article on ‘GST Rates’ to know more about the GST rates levied on various other items.