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Plant-based food industry seeks specific HSN codes; awaits detailed guidelines
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Friday, 19 September, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The plant-based food industry has written to the government seeking creation of specific HSN codes for plant -based food products.
A representation in this regard has been received by the Ministry of Food Processing Industries (MoFPI) recently.
As per industry representatives, the demand for a separate HSN code has been vital for identification of the product for the purpose of taxation and currently the HSN assigned to almond-based beverages is the same as caffeinated beverages and is currently placed in the 40% tax bracket after GST rationalisation.
“Previously, almond-based beverage was placed under the 18% tax bracket and due to confusion with respect to the HSN code, the product is now placed alongside caffeinated beverages,” said Praveer Srivastava of Plant Based Food Industry Association.
He added that many similar products like Soy milk and Coconut milk now come under the 5% tax bracket but the HSN code starting from 2202 for almond beverages has created problems for the companies, which have a substantial market share amongst the plant-based food products.
Srivastava added that as per FSSAI, for only Soy and Coconut the word ‘milk’ can be used, which has a separate HSN code and is now placed in the 5% tax category under GST.
“We have made representation before the MoFPI and sought clarification on the subject. Our petition is well received by the ministry and we hope that the matter will be resolved soon,” said Srivastava.
He added that a detailed guideline is also expected to be out for the same.
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