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If you’re running a bakery, managing a confectionery business, or simply buying bread, cakes, and cookies, it’s important to know how these products are taxed under GST. Unlike packaged food with uniform rates, bakery items attract different GST slabs depending on their type, branding, and whether they’re fresh or preserved.
Yes. Most bakery items—whether freshly baked or packaged—are taxable under GST. However, the tax rate varies from nil to 18% depending on the item. They fall under HSN codes in HSN Chapter 19 (bread, cakes, pastries) and Chapter 21 (food preparations).
| Bakery Product | HSN Code | GST Rate | Remarks |
|---|---|---|---|
| Unbranded fresh bread | 1905 | 0% | GST exempt if not branded or packaged |
| Branded or packaged bread | 1905 | 5% | Branded/labelled products are taxed |
| Cakes (fresh or pre-packed) | 1905 | 18% | Applies to birthday cakes, plum cakes, etc. |
| Pastries and muffins | 1905 | 18% | Includes chocolate or cream-filled items |
| Biscuits and cookies | 1905 | 18% | Branded snack-type biscuits |
| Sweet bakery items (barfi, rolls) | 1904 or 2106 | 12% or 18% | Based on ingredients & packaging |
All prepared cakes and pastries are taxed at 18%, even if sold by small bakeries or online platforms like Zomato or Swiggy.
Unbranded bread remains GST-free, but if it’s branded or sweetened, a GST charge applies. Flavored or processed breads may fall under higher slabs.
Cookies, branded chocolates, packaged muffins, Swiss rolls, and similar items attract 18% GST, especially if they’re preserved and labelled.
Bakery businesses can claim Input Tax Credit on:
Only GST-registered businesses are eligible to claim ITC on inputs taxed at 5%, 12%, or 18%.
Understanding the gst for bakery products is essential for both small businesses and large food retailers. Whether you bake at home, run a neighborhood cake shop, or operate an online bakery, applying the right GST rate ensures pricing transparency and tax compliance.
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BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.