For the farmers and traders of Mithila, Makhana is not just a superfood; it is the backbone of our economy. However, as the new tax structure comes into effect on September 22, 2025, a cloud of confusion remains over the GST rates for Fox Nuts (Makhana).
Despite the latest notifications, the distinction between different HSN codes has created a "tax trap" that is hurting the pockets of local traders and increasing the cost for the end consumer.
The New GST Rate Chart for Makhana (Effective 22.09.2025)
According to the latest Notification No. 09/2025 and No. 10/2025-Central Tax (Rate), the tax on Makhana is determined by its packaging and processing state:
| HSN Code | Product Description | Packaging Nature | GST Rate |
| 08 | Dried makhana, whether or not shelled or peeled | Pre-packaged and Labelled | 5% (2.5% CGST + 2.5% SGST) |
| 08 | Dried makhana, whether or not shelled or peeled | Other than pre-packaged/labelled (Bulk) | Nil (Exempt) |
| 2008 | Fruit, nuts, and seeds (Roasted, Salted, or Prepared) | Regardless of packaging | 5% (2.5% CGST + 2.5% SGST) |
The "Chapter 08" Confusion: A Burden on Traders
There is a significant and costly confusion between the first two categories mentioned above. Both fall under Chapter 08, yet their tax treatment is polar opposite based solely on the definition of "pre-packaged and labelled."
The Reality of Bulk Packaging
In the Makhana trade, "Bulk Packaging" (large gunny bags or high-volume sacks) is the standard for transportation. Because Makhana has a very high volumetric weight, it is rarely "pre-packaged" in the retail sense during transit. Under the law, these bulk, unlabelled shipments should attract Nil (Exempt) rates.
The Harassment on the Ground
The Mithila Kisan Utpadak Sangathan has observed a disturbing trend:
- Arbitrary Penalties: During transportation, GST officials often intercept bulk shipments and impose heavy penalties, claiming the goods do not qualify as "industrial packaging."
- The RTI Deadlock: When our officials filed an RTI application to seek a clear definition of "Industrial Packaging" for a high-volume crop like Makhana, the GST Department responded by stating that providing such definitions is "not in their scope."
The Result: Inflated Prices
Because of the constant fear of heavy penalties and the lack of clarity from authorities, most traders have started charging 5% GST across the board, even on items that should be exempt. This defensive tax collection is directly responsible for the increasing cost of Makhana in the market.
Key Definitions to Know
To defend your business against wrongful penalties, you must know these legal definitions as per the 2025 notifications:
- Pre-packaged and Labelled: Refers to commodities intended for retail sale in packages containing 25 kg/25 litres or less, which are required to bear declarations under the Legal Metrology Act.
- Bulk/Unlabelled: Any shipment exceeding 25kg or not intended for retail sale in that specific package should ideally fall under the Exempt (Nil) category.
Download the Official Reference
Stay informed and keep a copy of the official rates to show to authorities during transit.
👉 [Download the Latest GST Rates 2025 PDF (Ease of Reference Guide)]
Disclaimer: This blog post is for informational purposes only. Traders are advised to consult with a tax professional and refer to the official Gazette of the Government of India for legal compliance.
