Looking for expert help with Income tax and GST for dry fruit traders India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- Almonds, cashews, pistachios, walnuts, dates, figs, raisins and mixed dry fruits are all 5% GST from 22 September 2025 (Notification 9/2025-Central Tax (Rate), Schedule I).
- Loose makhana and fresh (undried) nuts are exempt; packed and labelled makhana is 5%.
- Composition at 1% rarely suits a wholesaler: no inter-state sales, no GST on your bill, and no ITC for your buyers.
- If last year's turnover crossed Rs 10 crore, deduct 0.1% TDS under Section 194Q on big supplier purchases. TCS under 206C(1H) stopped from 1 April 2025.
- Section 44AD deems 6% profit on digital receipts. If your real margin is lower, compare before you file.
What is the GST rate on dry fruits in India? Dry fruits and nuts attract 5% GST from 22 September 2025. Cashews, almonds, pistachios, walnuts, dates, figs, raisins and mixed dry fruits are all in Schedule I of Notification 9/2025-Central Tax (Rate), whether shelled or not. Loose dried makhana and fresh nuts are exempt under Notification 10/2025-Central Tax (Rate).
A dry fruit business is a volume game on thin margins. You buy almonds by the bag, cashews by the tin and dates by the carton, then sell to sweet shops, bakeries, caterers and walk-in customers. Most of the year is steady. Then the Diwali gift-box season arrives and a few weeks carry a large share of the year's sales. This guide covers what a dry fruit trader or wholesaler needs for GST and for the AY 2026-27 income tax return. If you run a general grocery counter, our kirana store tax guide fits better.
What GST rate applies to what you sell?
The September 2025 rate changes put almost the whole dry fruit shelf at a single 5% rate. The table covers the lines a typical trader stocks.
Comparison
GST Rates for Dry Fruits and Nuts (from 22 September 2025)
| Item | HSN | GST rate |
|---|---|---|
| Cashew nuts, shelled or not | 0801 | 5% |
| Almonds, pistachios, walnuts, hazelnuts, pine nuts (dried) | 0802 | 5% |
| Dried chestnuts (singhada) | 0802, 0813 | 5% |
| Dates and figs, dried | 0804 | 5% |
| Raisins and dried grapes | 0806 | 5% |
| Dried apricots, prunes, mixed dry fruits and nut mixes | 0813 | 5% |
| Roasted, salted or flavoured nuts | 2008 | 5% |
| Dried makhana, pre-packaged and labelled | 08 | 5% |
| Dried makhana, loose | 08 | Exempt |
| Fresh (undried) almonds, walnuts, pistachios | 0802 | Exempt |
Source: Notification 9/2025-Central Tax (Rate), Schedule I, S. No. 22-26, 28, 31, 132; Notification 10/2025-Central Tax (Rate), S. No. 42 and 45
"Pre-packaged and labelled" has a specific meaning. It covers packs of up to 25 kg meant for retail sale that must carry Legal Metrology declarations (Explanation to Notification 10/2025-Central Tax (Rate)). So the makhana you weigh out from an open sack is exempt, while your own branded 250 g pouch is 5%.
Diwali gift boxes. A box of different items sold for one price is a mixed supply, taxed at the highest rate among its contents (Section 8(b), CGST Act). A box of almonds, cashews, raisins and chocolates stays at 5%, because chocolates are also 5% now. Add a can of aerated soft drink and the whole box moves to 40% (Notification 9/2025-Central Tax (Rate), Schedule III, S. No. 1: 20% CGST plus 20% SGST). Keep drinks out of the box, or sell them separately.
When do you need GST registration?
If you only sell goods, registration is required once aggregate turnover crosses Rs 40 lakh in most states. Telangana and several other states kept the Rs 20 lakh limit (Notification 10/2019-Central Tax). A Hyderabad trader with Rs 24 lakh of sales must register, even though the same trader in a Rs 40 lakh state would not.
One point catches wholesalers early. Selling to a buyer in another state is an inter-state supply, and that needs registration even below the threshold (Section 24(i), CGST Act). If you move a consignment worth more than Rs 50,000, you also need an e-way bill before the goods leave (Rule 138, CGST Rules). See our e-way bill guide for the portal steps, and our GST registration service if you haven't registered yet.
Regular scheme or composition: which leaves you more money?
Under the composition scheme, a trader pays 1% of turnover (0.5% CGST plus 0.5% SGST, Rule 7, CGST Rules), up to Rs 1.5 crore turnover. In return you can't charge GST on your bill, you can't claim input tax credit (ITC), and you can't sell to other states (Section 10(2)(c), CGST Act).
For a wholesaler, that last rule usually ends the discussion. Your buyers are sweet shops, bakeries and caterers who want a tax invoice so they can claim ITC. A composition dealer can only issue a bill of supply, so those buyers lose 5%.
For a retail shop selling to consumers, the answer turns on your margin. Here's one month at Rs 5,25,000 of GST-inclusive counter sales:
Comparison
One Month, Rs 5.25 Lakh of Retail Sales: Regular vs Composition
| Item | Regular scheme | Composition (trader) |
|---|---|---|
| Tax on sales | Rs 5,25,000 x 5/105 = Rs 25,000 | 1% x Rs 5,25,000 = Rs 5,250 |
| Shop A: stock bought Rs 4,00,000 + 5% GST | Rs 20,000 ITC; pays Rs 5,000 in cash | Rs 20,000 becomes cost |
| Shop A: total GST borne | Rs 25,000 | Rs 25,250 |
| Shop B: stock bought Rs 3,00,000 + 5% GST | Rs 15,000 ITC; pays Rs 10,000 in cash | Rs 15,000 becomes cost |
| Shop B: total GST borne | Rs 25,000 | Rs 20,250 |
Source: Rule 7, CGST Rules 2017; Notification 9/2025-Central Tax (Rate). Figures are illustrative.
Under the regular scheme the total always comes to Rs 25,000, because your ITC just offsets part of the output tax. Under composition it's 1% of sales plus the GST you paid on stock. The two meet when your purchases are about 75% of your GST-inclusive sales. Shop A, buying at 76%, is slightly better off on the regular scheme. Shop B, with a gift-box margin, saves Rs 4,750 a month under composition. Our composition scheme guide covers the other eligibility conditions.
TDS on big purchases: does Section 194Q apply to you?
Section 194Q applies only to a buyer whose turnover in the previous financial year was above Rs 10 crore. If that's you, deduct 0.1% on the amount by which your purchases from one resident seller exceed Rs 50 lakh in the year. Deduct it when you credit the supplier's account or pay, whichever is earlier.
Example: a wholesaler with Rs 14 crore turnover in FY 2024-25 buys Rs 1.8 crore of cashews from one processor in FY 2025-26. TDS is 0.1% of Rs 1.3 crore, which is Rs 13,000.
Before April 2025, sellers above Rs 10 crore also had to collect TCS under Section 206C(1H). Finance Act 2025 added a proviso so that sub-section doesn't apply from 1 April 2025. Only the buyer's TDS remains. From tax year 2026-27 the TDS provisions sit in Section 393 of the Income-tax Act 2025; see our Section 194Q guide for the new-law details, and our TDS filing service for quarterly returns.
How is your income taxed for AY 2026-27?
Step-by-Step Guide
Choosing How to Report Your Trading Income
Check Section 44AD eligibility
Resident individual, HUF or partnership firm (not LLP). Turnover up to Rs 2 crore, or up to Rs 3 crore if cash receipts are within 5% of total receipts.
Split receipts by mode
Receipts by UPI, card, cheque or bank transfer count at 6%. Cash receipts count at 8%.
Compare with your real margin
If your books show less than the deemed profit, declaring actual profit may cost less tax, but brings books and audit duties.
Check the audit limit
Section 44AB audit applies above Rs 1 crore turnover, or Rs 10 crore if cash receipts and cash payments are each within 5%.
File the right form
ITR-4 for Section 44AD if total income is within Rs 50 lakh and other conditions are met; ITR-3 if you keep full books.
Source: Sections 44AD, 44AB and 87A, Income-tax Act 1961; Finance Act 2025
Example 1 (small retail shop, new regime): Turnover Rs 60 lakh, of which Rs 36 lakh by UPI and card and Rs 24 lakh in cash. Deemed profit is 6% of Rs 36 lakh (Rs 2,16,000) plus 8% of Rs 24 lakh (Rs 1,92,000), so Rs 4,08,000. Tax at 5% on the Rs 8,000 above Rs 4 lakh is Rs 400. The Section 87A rebate (income up to Rs 12 lakh) wipes it out. Tax payable: nil.
Example 2 (wholesaler, new regime): Turnover Rs 2.6 crore, 97% received by bank transfer and UPI. Cash is 3% of receipts, so the Rs 3 crore limit applies.
- Deemed profit: 6% of Rs 2,52,20,000 = Rs 15,13,200, plus 8% of Rs 7,80,000 = Rs 62,400. Total Rs 15,75,600.
- Tax: nil up to Rs 4 lakh, Rs 20,000 on Rs 4-8 lakh, Rs 40,000 on Rs 8-12 lakh, and 15% of Rs 3,75,600 = Rs 56,340. Total Rs 1,16,340.
- No 87A rebate, as income is above Rs 12 lakh. Add 4% cess of Rs 4,654. Tax payable: Rs 1,20,994.
That Rs 15.76 lakh deemed profit is a 6.06% margin. If your books honestly show a lower margin, declaring actual profit may be cheaper. The cost: leaving Section 44AD after using it bars you from it for five years, and during that time you need books and a tax audit whenever income exceeds the basic exemption limit (Section 44AD(4) and (5), Section 44AB(e)). See our Section 44AD guide and old vs new regime guide.
Common mistakes dry fruit traders make
- Charging GST on loose makhana. Loose dried makhana is exempt. Only pre-packaged and labelled makhana is 5%.
- Treating fresh and dried nuts alike. Fresh almonds and walnuts are exempt (Notification 10/2025-Central Tax (Rate), S. No. 45). Dried ones are 5%. Your invoice description should say which it is.
- Putting a soft drink in the gift box. One 40% item makes the whole mixed box 40%.
- Opting for composition while selling to other states. Inter-state sales aren't allowed under composition, and a single out-of-state order can cost you eligibility.
- Taking big festival orders in cash. Receiving Rs 2 lakh or more in cash from one person for one transaction breaks Section 269ST. See our cash transaction limits guide.
How Tax Garden helps dry fruit traders
We file GSTR-1 and GSTR-3B for dry fruit traders and wholesalers, with B2B invoices, retail sales and exempt makhana reported in the right tables. See our GST return filing service. We also prepare your ITR and check whether Section 44AD or actual books gives the lower lawful tax; see our ITR filing service and pricing.
