Packed atta, rice and dal: when is GST 5%?
Updated 07-11-2026
Since 18 July 2022, rice, wheat, atta, pulses and similar foods carry 5% GST when they are "pre-packaged and labelled" — and nothing when they are sold loose. The line is drawn by the Legal Metrology rules, which is why 25 kg matters.
The rule in one line
Specified foods — cereals such as rice and wheat, flour, pulses, and items like curd, lassi and puffed rice — attract 5% GST when they are pre-packaged and the package must carry the declarations required by the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011. Sold loose, they carry no GST.
Why 25 kg
For these foods the Legal Metrology rules require the declarations only on packages of up to 25 kg or 25 litres. So a single package above 25 kg is not "pre-packaged and labelled" for GST and carries no GST, while a pack of up to 25 kg is taxed at 5%. The official FAQ gives the example: a 25 kg pack of atta is taxable; a 30 kg pack is exempt.
| How it is sold | GST |
|---|---|
| Atta in a 10 kg labelled pack | 5% |
| Rice in a 25 kg labelled bag | 5% |
| Rice in a single 50 kg bag | Nil |
| Dal weighed out loose at the counter, from a sack the shop bought | Nil |
| A bigger bag holding ten 10 kg labelled packs (100 kg in all) | 5% — each pack inside is a retail pack |
| A labelled pack meant for an industrial or institutional consumer | Nil — excluded from the declaration rules |
Three things people get wrong
- Leaving the label off does not avoid GST. The FAQ's example is a miller selling 20 kg packs without the declarations: they are still taxable, because the rules require the declarations on such packs.
- Many small packs inside one big bag are still taxed, even when the big bag weighs more than 25 kg.
- A shop that buys a sealed pack pays GST on it; selling the same goods loose from that pack is not a sale of a packaged commodity, so that retail sale carries no GST.
The 22 September 2025 rate changes did not change this rule: these staples stay at 5% when pre-packaged and labelled. Milk, paneer and bread are separate items with their own entries (nil).
In the app
Keep loose and packed stock as separate items — "Rice (Loose)" at nil and "Basmati Rice 1 kg" at 5%, for example. The kirana and wholesale item lists the app sets up already do this, including 50 kg bags at nil and 25 kg bags at 5%.
Sources
- FAQs on GST applicability on "pre-packaged and labelled" goods, Tax Research Unit, Ministry of Finance, 17 July 2022
- GST Council — 56th meeting, PIB press release of 3 September 2025 (rate changes on goods)
Checked against the official text on 07-11-2026. This is general information, not tax advice.