Grocery and mart bills, post 22 September 2025 GST 2.0 slabs
Unlike most categories where a single GST rate applies, grocery bills in India carry multiple GST rates on the same bill. The 22 September 2025 GST 2.0 reform restructured grocery taxation, simplifying the earlier 5-slab system (0/5/12/18/28) into effectively four buckets per CBIC Notification 1/2017 - Central Tax (Rate) as amended:
- 0% (exempt / nil-rated), rice, wheat flour, dal, fresh fruits, vegetables, milk, eggs, basic breads, salt, jaggery, UHT milk, packaged paneer, packaged chapati/roti (last three moved from 5% to 0% in Sep 2025)
- 5%, packaged staples (atta, sugar, tea, edible oil), branded namkeen, bhujia, ghee, butter, processed dairy, fruit juices, chocolates, cornflakes, instant noodles, pasta, items previously at 12% mostly merged into 5%
- 18%, soaps, toothpaste, hair products, biscuits, ice cream, packaged drinks (non-carbonated), most household and personal-care items
- 40%, carbonated and caffeinated drinks (cola, soda, energy drinks, sweetened sparkling water), replaced the earlier 28% slab from 22 Sep 2025
A typical grocery bill in 2026 mixes these, milk (0%), packaged tea (5%), shampoo (18%), Coke (40%), on the same trolley. The earlier 12% slab has been mostly retired; check the latest CBIC rate finder for any item you're unsure about. Rule 46(l) of the CGST Rules requires the invoice to consolidate GST by bracket, with each bracket's taxable value, CGST and SGST shown separately.
What POS receipts get right
Major Indian retail chains (D-Mart, Reliance Smart, More, Big Bazaar successors, BigBasket, Blinkit) use POS systems that map every barcoded item to its HSN and apply the right rate. The receipt typically shows:
- Item name (truncated to ~30 chars on thermal-roll receipts)
- HSN code
- MRP per unit
- Quantity
- Total MRP
- Discount (if any)
- Net amount
- GST rate (column or footer)
At the bottom, the receipt shows GST consolidation: 5% bracket subtotal + CGST/SGST, 12% bracket subtotal + CGST/SGST, 18% bracket subtotal + CGST/SGST, and grand total.
Kirana / unregistered store receipts
Small kirana stores below the GST threshold (₹40 lakh aggregate turnover for goods) are not registered. They issue plain receipts (called "bills of sale" or "cash memos") without any GST charge. These are still valid for the buyer's expense records but don't carry an ITC chain. Our kirana template generates this format, clean, no GST line.
Reimbursement use cases
- Office snacks / pantry restocking, reimbursable to the employee against actual bills.
- Client-meeting refreshments, typically capped per company policy. The bill should show items consistent with the meeting context.
- Restaurant/cafe purchases of raw materials, eligible for ITC under Section 16 if the restaurant is GST-registered and the items are inputs to a taxable supply.
- Home grocery, not reimbursable, not deductible. Personal expense.
What the bill must contain
- Store name, address, GSTIN (for registered stores)
- Bill / receipt number unique within the store's FY
- Date and time
- Cashier / counter / lane (POS-specific)
- Each line: item name, HSN, MRP, quantity, total, GST rate
- Discounts (if any) clearly marked
- GST consolidation by bracket per Rule 46(l)
- Grand total and mode of payment
Common mistakes
- Single GST rate applied to a mixed cart. Wrong; auditors will spot it. Each item must carry its correct HSN-based rate.
- Adding GST to MRP. MRP in India is the "all-inclusive" final price; GST is already included in MRP. Manually adding it inflates the price illegally.
- Skipping HSN on items. Mandatory for store turnover above ₹5 Cr (6-digit), ₹1.5–5 Cr (4-digit) per CBIC Notification 78/2020.
- Issuing a tax invoice from an unregistered kirana. They can only issue plain receipts; no GST charge.