A rice mill's invoice has to separate main product, by-products and services. Rice of heading 1006 is taxed at 5% when pre-packaged and labelled and is exempt otherwise; rice bran (other than de-oiled) is at 5%, de-oiled rice bran is exempt, and unprepared husk is exempt. Custom milling of a farmer's or the government's paddy is job work on food products at 5%. The bill should show variety, grade, broken percentage, packing, bag count, net weight and FSSAI licence.
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Sona masoori raw rice, pre-packaged and labelled, 25 kg bag
1006
100 BAG
1,300.00
1,30,000.00
5%
Parboiled rice, loose in 50 kg gunny bags (not pre-packaged)
1006
80 BAG
1,950.00
1,56,000.00
0%
Rice bran (not de-oiled), 40 kg bag
2302
60 BAG
680.00
40,800.00
5%
Rice husk, unprepared, per quintal
1213
50 QTL
150.00
7,500.00
0%
Custom milling of paddy (job work), per quintal
998817
200 QTL
90.00
18,000.00
5%
Taxable value
₹3,52,300.00
GST (CGST + SGST, or IGST if inter-state)
₹9,440.00
Invoice total
₹3,61,740.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a rice mill invoice needs
Variety and grade
Sona masoori, kolam, parboiled and basmati rice sell at different prices. Grade and broken percentage on the bill match the sample the buyer approved.
Packing: pre-packaged and labelled or loose
Rice in a labelled retail pack up to 25 kg is taxed at 5%; loose rice or bulk bags not meant for retail are exempt. The packing type must be on each line.
Paddy received for custom milling
When the mill processes paddy owned by someone else, the bill should show paddy received, rice and by-products delivered, and the milling charge, because the charge is job work.
Moisture and broken percentage
Rice buyers deduct for excess moisture or broken grains. Printing the agreed figures avoids later debit notes and gives both sides a written reference when a lot is rejected at the buyer's godown.
FSSAI licence number
Rice mills are food business operators. The FSSAI licence number on the invoice identifies the manufacturing unit.
Lorry number and weighbridge slip
Rice moves in truck loads. Weighbridge slip and vehicle number back up net weight and the e-way bill.
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)
Schedule I of Notification 9/2025-Central Tax (Rate) taxes rice of heading 1006 at 5% only when pre-packaged and labelled, and Notification 10/2025 exempts rice other than pre-packaged and labelled. 'Pre-packaged' follows the Legal Metrology meaning of a pack meant for retail sale with a declared quantity, generally up to 25 kg. A mill selling 26 kg or 50 kg bulk bags to wholesalers and also packing 5 kg and 10 kg branded packs must therefore treat the two as different supplies, with the same variety at two different rates on the same day.
By-products each have their own rate
Rice bran other than de-oiled rice bran is listed separately in Schedule I at 5%. De-oiled rice bran is exempt under Notification 10/2025. Cereal straw and husks, unprepared, are exempt under heading 1213. Broken rice remains rice of heading 1006 and follows the packing test. A rice mill invoice that lumps all by-products together under 'bran and husk' at one rate is a common error during audit.
Custom milling is job work at 5%
Notification 15/2025-Central Tax (Rate) replaced the 9988 job-work entry so that job work in relation to all food and food products of chapters 1 to 22 is taxed at 2.5% central tax, or 5% in total. Milling paddy owned by a trader, a farmer or a state procurement agency into rice is such job work. The invoice is raised only on the milling charge, not on the value of the paddy, and the paddy should be received under the principal's delivery challan.
Input credit and the exempt loose rice
Loose rice is exempt, so a mill selling mostly bulk rice cannot claim full input tax credit on packing materials, machinery spares and power used for that rice. Credit has to be reversed in proportion to exempt turnover. This makes accurate packing information on every invoice important not just for output tax but also for the credit calculation.
E-way bill and FSSAI
A truck of rice easily exceeds Rs 50,000. For taxable pre-packaged rice an e-way bill is needed; for exempt loose rice the e-way bill rules provide relief for many exempt goods, but carry the invoice and weighbridge slip on the truck. The FSSAI licence number should be printed on all invoices and packs.
Common billing mistakes
✕Charging 5% on bulk 50 kg rice bags sold to wholesalers when they are not pre-packaged and labelled for retail.
✕Billing de-oiled rice bran at 5% like ordinary rice bran, when de-oiled rice bran is exempt.
✕Raising a custom milling invoice on the paddy value instead of only the milling charge.
✕Not recording paddy received and rice returned for job work, which leaves the principal's stock unreconciled.
✕Missing the FSSAI licence number on invoices and packs.
Rice mill GST invoice: FAQ
What is the GST on rice in 2026?
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Rice is taxed at 5% when pre-packaged and labelled and is exempt when sold loose or in bulk packs not meant for retail. Both follow heading 1006.
What is the GST rate on rice milling job work?
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Job work on food products of chapters 1 to 22, including milling of paddy owned by another person, is taxed at 5% under Notification 15/2025-Central Tax (Rate).
Is rice bran taxable?
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Rice bran other than de-oiled rice bran is taxed at 5%. De-oiled rice bran is exempt.
What HSN code applies to rice husk?
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Cereal straw and husks, unprepared, fall under heading 1213 and are exempt under Notification 10/2025.
Does a rice mill need e-invoicing?
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If aggregate turnover crosses the e-invoice threshold, every B2B invoice, including job-work bills to traders, needs an IRN. Sales to unregistered buyers do not.