Spices and blends share 5% but not a heading
Notification 9/2025-Central Tax (Rate) lists pepper and dried or ground capsicum under 0904, seeds of coriander, cumin, fennel and similar spices under 0909, ginger other than fresh ginger, turmeric other than fresh turmeric, curry and other spices under 0910, and all goods of 2103, including mixed condiments and mixed seasonings, in the 5% schedule. The rate is the same, but a blended masala is a mixed condiment under 2103, while a single ground spice stays in chapter 09. Use the right heading on each line so GSTR-1 and e-invoices are accurate.
Fresh produce and seeds of sowing quality
Fresh ginger and fresh turmeric are excluded from the 0910 entry, and seeds of sowing quality are excluded from the 0909 entry. A spice unit that also trades in fresh produce or seed must check those items against their own entries rather than billing them at the processed-spice rate.
FSSAI and Legal Metrology
FSSAI requires licence or registration numbers on invoices and cash memos. Packaged spice labels must show MRP, net quantity and manufacturer details under the Legal Metrology rules. The invoice should use the same pack descriptions as the label so inspectors and distributors see consistent information.
Distributor returns and credit notes
Spice packs are returned when damaged, close to expiry or infested. Issue credit notes against the original invoices within the time limit for declaring them, and record destroyed stock separately, because input tax credit on inputs used in destroyed goods may need to be reversed.
Bulk supply to food processors
Spice makers also sell in 25 kg bags to restaurants, caterers and food processors. Bulk lines share the 5% rate but should carry their own item codes, with lot number and moisture or colour test values where buyers ask for them, so bulk and retail invoices are not confused.
Sorting, cleaning and grinding for others
Small spice units often grind chilli, turmeric or coriander brought by traders and households for a per-kilogram charge. The spice remains the customer's property, so the unit is supplying a processing service, not selling spice, and the invoice should show only the grinding charge with a service accounting code and its rate. Keep these jobs in a separate register with the customer's name and weight received and returned, because mixing customer-owned stock with your own production makes stock reconciliation and yield records unreliable at audit time.