Agri, textiles and crafts

GST invoice format for a mushroom farm

Fresh or chilled mushrooms are vegetables of heading 0709 and are exempt under Notification 10/2025, and dried mushrooms that are not further prepared are exempt under heading 0712. Mushroom spawn sold to growers is planting material of chapter 6 and exempt. Mushrooms prepared or preserved otherwise than by vinegar, such as canned or brined button mushrooms, are taxed at 5% under heading 2003. The bill should show variety, grade, pack weight, harvest date, cold chain and FSSAI details.

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Sample mushroom farm invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Fresh button mushrooms, 200 g punnet	0709	500 PAC	45.00	22,500.00	0%
Fresh oyster mushrooms, per kg	0709	40 KGS	180.00	7,200.00	0%
Dried oyster mushrooms, not further prepared	0712	5 KGS	900.00	4,500.00	0%
Button mushroom spawn, 1 kg bag	0602	50 KGS	120.00	6,000.00	0%
Button mushrooms in brine, canned, 400 g	2003	120 NOS	95.00	11,400.00	5%
Taxable value				₹51,600.00
GST (CGST + SGST, or IGST if inter-state)				₹570.00
Invoice total				₹52,170.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a mushroom farm invoice needs

Variety and grade: Button, oyster, milky and shiitake mushrooms sell at very different prices, and buttons are graded by cap size and closure. Variety and grade on each line tell the hotel or retailer exactly what was supplied.
Harvest date and pack weight: Fresh mushrooms last only a few days even under refrigeration. Harvest date and punnet weight help buyers rotate stock and handle complaints about browning, moisture loss or short weight.
Fresh, dried or preserved: Fresh and simply dried mushrooms are exempt; canned, brined or otherwise preserved mushrooms are taxable. The form decides the rate and must be stated.
Spawn strain and batch: Spawn is sold by strain and batch. Recording these helps growers report yield problems and lets the spawn lab trace a contaminated batch back to its mother culture.
FSSAI registration: Mushroom farms selling to hotels and retailers are food businesses. The FSSAI registration or licence number on bills reassures hotel and supermarket buyers, who often refuse to onboard a supplier without it.
Cold chain details: Mushrooms move in chilled vans, often overnight to city markets. Dispatch time and van temperature on the bill help settle spoilage claims and show the farm met the buyer's cold chain terms.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a mushroom farm

Fresh and dried mushrooms are exempt

Notification 10/2025-Central Tax (Rate) exempts other vegetables, fresh or chilled, of heading 0709, which covers mushrooms, and dried vegetables, whole, cut, sliced, broken or in powder but not further prepared, of heading 0712. A grower selling fresh punnets to supermarkets or dried oyster mushrooms to wholesalers is supplying exempt goods. The packing of fresh mushrooms in punnets does not change this, because the vegetable entries carry no packing condition.

Spawn is planting material

Mushroom spawn is propagating material classified with live plants in chapter 6, and Notification 10/2025 exempts all goods of chapter 6. A spawn laboratory selling spawn to growers therefore makes exempt supplies. Labs should still describe the strain and batch clearly, since the exemption follows the classification of the product.

Prepared mushrooms are taxed at 5%

Schedule I of Notification 9/2025 lists mushrooms and truffles prepared or preserved otherwise than by vinegar or acetic acid, of heading 2003, at 5%. Canned button mushrooms in brine and similar preserved products move the grower into a taxable product. Units that start canning must register once the threshold is crossed and bill canned lines with tax.

Input credit and composting

Most mushroom farms buy compost, casing soil, spawn and packaging. Compost and casing materials may be taxable inputs, and because fresh mushrooms are exempt, a farm selling only fresh produce cannot claim input tax credit on them. A unit that also cans mushrooms can claim credit on inputs used for the canned product and must split common credit.

Value-added products need separate checks

Mushroom growers increasingly sell value-added items such as mushroom pickle, mushroom powder blends, soup mixes and ready-to-cook packs. Each of these has to be classified on its own: pickles preserved in vinegar fall in a different entry from mushrooms preserved in brine, and powder blends with spices or other ingredients may be food preparations of chapter 21. Simply dried and powdered mushrooms without other ingredients remain dried vegetables of heading 0712. Before listing a new product, the farm should fix its heading and rate, print that classification in the item master and use it consistently on every invoice. This avoids a situation where the same product is billed exempt to one buyer and taxable to another.

Common billing mistakes

Charging GST on fresh mushroom punnets because they are packed, labelled and branded, although the vegetable exemption carries no packing condition.
Treating canned or brined mushrooms as exempt fresh vegetables.
Billing spawn as a taxable input when it is planting material of chapter 6, which is exempt like other live plants and propagating material.
Missing harvest dates on the bill, leading to complaints from retailers about stale or browning stock that cannot be answered.
Claiming input credit on compost when all sales are exempt.

Mushroom farm GST invoice: FAQ

Is GST charged on fresh mushrooms?

No. Fresh or chilled mushrooms of heading 0709 are exempt under Notification 10/2025-Central Tax (Rate).

Are dried mushrooms taxable?

Dried mushrooms that are not further prepared fall under heading 0712 and are exempt.

What is the GST on canned mushrooms?

Mushrooms prepared or preserved otherwise than by vinegar, of heading 2003, are taxed at 5%.

Is mushroom spawn taxable?

No. Spawn is planting material of chapter 6, which is exempt.

Does a mushroom farm need GST registration?

Not if it sells only fresh or dried mushrooms and spawn. Registration is required when taxable canned or processed products push aggregate turnover, including exempt sales, above the threshold.

Sources: Gazette of India: Notification 10/2025-Central Tax (Rate), exempt goods · Gazette of India: Notification 9/2025-Central Tax (Rate), goods rate schedules

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