With GST 2.0, many household staples and packaged foods have moved into lower tax slabs or become tax-free. The table below highlights the key GST changes for common food items:

(​​Please note that this table may contain products that may fall under other categories as well)

Tax on Dairy and Related Food Products

Dairy products saw major changes in prices after the introduction of GST 2.0. 

Essentials like UHT milk and paneer are now fully exempt, while items such as butter, ghee, cheese, and condensed milk have moved into the lower 5% slab. 

Here is a table summarising all the price changes in the dairy and related products after GST implementation on 22nd September 2025:

(​​Please note that this table may contain products that may fall under other categories as well)

GST on Packaged & Processed Food Items

Under the latest GST slabs, most packaged and processed foods now fall under the 5% or NIL GST slab, reducing household expenses while boosting demand in the food processing sector. At the same time, sin goods such as tobacco and aerated drinks have been shifted into the higher 40% tax bracket. 

Here is an overview of all the GST rate cuts on all packaged & processed foods:

(​​Please note that this table may contain products that may fall under other categories as well)

GST on Beverages and Plant-Based Alternatives

From 22nd September 2025 onwards, essential beverages like tea, coffee extracts, and plant-based milk are now under the 5% slab, while aerated drinks have moved into the 40% high-tax category. This mix of rationalisation and stricter “sin tax” aims to balance affordability with revenue needs.

Here is a detailed table on the GST rate changes on food items such as beverages and plant-based alternatives:

(​​Please note that this table may contain products that may fall under other categories as well)

GST on Dry Fruits, Spices & Condiments

Dry fruits and spices often see a surge in demand during festive seasons, making them key household expenses. With GST 2.0, these products have now shifted to the lower 5% slab, cutting costs on everyday flavourings like spices, sauces, and condiments, as well as festive staples such as almonds, pistachios, and dates. 

Here is a list of GST rate changes on food items such as dry fruits, spices and condiments. 

(​​Please note that this table may contain products that may fall under other categories as well)

Price Comparison: Before vs After Cut

Here is a complete price comparison of common food items before and after the GST 2.0 rate cuts, showing how the new structure translates into direct savings for households.

Tips for Consumers to Maximise Savings

The impact of GST 2.0 on food items is certainly interesting and supportive to a vast majority of common Indians. However, there are certain tips consumers can follow to maximise their profit:

1. Buying in bulk: with GST on essentials now cut to 5% or NIL, bulk purchases of groceries and household staples help families lock in bigger cumulative savings while also benefiting from special retail and delivery offers.
2. Check for GST savings on invoices: Review bills, both online and offline, for a ‘GST Discount’ line showing exactly how much tax savings reach the consumer thanks to the new rates.
3. Prioritise purchases during the festive GST: Major platforms like Amazon, Flipkart, and Zomato highlight these GST benefits, as many items like personal care, packaged foods, and electronics are now taxed at just 5% or 18%.
4. Focus on tax-free essentials: Utilise the nil GST rates on UHT milk, Indian breads, and select health and life insurance policies to cut monthly expenses.
5. Upgrade home appliances and electronics: TVs, air conditioners, refrigerators, and solar equipment are now in lower GST slabs, making upgrades more affordable during the festive season.
6. Cross-check GST rates for smart shopping: Use GST calculators and government portals to confirm category-wise rates and ensure sellers are passing on correct tax benefits

Impact of GST Cuts on Retailers & Farmers

The recent GST cuts are providing significant relief to both retailers and farmers, strengthening the supply chain, MSMEs, and the agricultural sector. Here are some of the major ways these reforms are fostering growth and efficiency:

• Lower GST rates on essential agricultural equipment such as tractors, irrigation systems, and fertiliser inputs make them more affordable for farmers, boosting productivity and rural prosperity.
• Small retailers and MSMEs benefit from reduced compliance costs and a streamlined tax structure, allowing them to allocate resources towards business growth and job creation.
• Lower tax rates on goods like packaging materials reduce logistics and supply chain costs, enhancing efficiency from farm to market.
• Cheaper consumer products and daily essentials due to GST cuts stimulate demand at the grassroots, supporting small manufacturers and shopkeepers.
• Textile and handicraft MSMEs and the farmers supplying raw material will find their products more competitive, aiding exports and rural livelihoods.
• Uniform GST rates boost transparency and speed up refunds, improving the working capital flow for MSMEs and agri-traders.

Collectively, the GST reductions are creating a more resilient value chain and empowering agriculture-driven communities for sustained growth.

Conclusion

The revised GST 2.0 rates on food items mark a decisive shift toward affordability, especially for households managing everyday expenses. 

With essentials like milk, paneer, pulses, and even packaged foods now falling under the 5% or NIL tax slab, consumers can expect tangible savings on their monthly grocery bills. 

At the same time, processed and packaged categories such as dry fruits, condiments, and beverages also benefit from lowered rates, making festive and bulk shopping more cost-efficient. 

As these changes take effect, the impact will be felt not just in homes but also across food supply chains, ensuring better access and affordability for millions.

Disclaimer: The GST rates, car categories, and price illustrations provided in this blog are based on the GST 2.0 reforms announced on 22nd September 2025. Actual on-road costs may differ depending on brand, variant, state-level taxes, insurance, and dealer policies. Readers are advised to verify the latest updates and consult authorised dealers before making a purchase decision.