--- title: "New GST for Bakery Products 2026: 5% Rate on Biscuits, Bread" description: "New GST rate on bakery products in 2026 is 5% on bread, biscuits, rusks and packaged bakery goods. Busy ensures accurate GST billing on every sale and purchase." canonical: "https://busy.in/gst-rates/bakery-products/" author: "Madan Murari" published: "2025-05-19T16:34:22.000Z" category: "GST Rates" --- - The **gst on bakery items** depends on the product category and HSN classification. - Bread, including branded or packaged bread, is **Nil-rated**. - Cakes, pastries, biscuits, and other bakers’ wares generally attract **5% GST**. - Sugar confectionery generally attracts **5% GST** under the revised structure. - ITC is available on eligible inputs used for taxable supplies, subject to GST rules. - GST registration depends on the applicable turnover threshold and registration provisions. # New GST for Bakery Products: Tax on Cakes, Bread, and Confectionery 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**](https://busy.in/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. ## **New GST Rate on Bakery Products in India** The Government of India revised GST rates effective from **22 September 2025**. Below are the **current GST rates** for common bakery items (no compensation cess). **Key takeaway:** 12% is no longer a standard GST slab; items previously under this slab generally moved to **5% or 18%**, depending on their classification. Exemptions continue where applicable. ## GST Rate on Bakery Products The **bakery gst rate** depends on the type of bakery product and applicable HSN classification, with bread being Nil-rated and many other bakers’ wares attracting **5% GST**. | Bakery Product | HSN Code | GST Rate (From 22 Sep 2025) | GST Rate (Before 22 Sep 2025) | Remarks | | --- | --- | --- | --- | --- | | Bread, branded or otherwise | 1905 | 0% | 0% | Bread remains GST-exempt | | Cakes, including fresh and pre-packed cakes | 1905 | 5% | 18% | GST reduced from 18% to 5% | | Pastries and muffins | 1905 | 5% | 18% | GST reduced from 18% to 5% | | Biscuits and cookies | 1905 | 5% | 18% | GST reduced from 18% to 5% | | Sweetmeats such as barfi | 2106 90 | 5% | 5% | GST rate remains 5% | **Note:** From **22 September 2025**, pastries, cakes, biscuits and other bakers’ wares under HSN 1905 attract **5% GST instead of 18%**. Bread remains GST-exempt. ## **Are Bakery Products Taxable Under GST?** Yes. Most bakery items are taxable under GST, with rates varying by product category. Bakery products typically fall under: - **HSN Chapter 19** – Bread, cakes, pastries, biscuits - **HSN Chapter 21** – Food preparations such as sweet bakery items Depending on the product classification, the applicable GST rate may be **Nil or 5%**. ## **GST Rate on Cakes and Pastries** Prepared cakes and pastries are generally taxed at **5% GST**. This applies to bakery products such as: - Fresh cakes - Cream cakes - Pastries - Muffins - Similar bakery desserts The **cake gst rate** is generally **5%** for cakes and pastries classified as bakers’ wares under HSN 1905. The **gst on cakes** was reduced from **18% to 5%** effective from 22 September 2025. Live Demo Available Today ## Unsold Bread Or Cakes? Identify Expiry Stock Early. Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST on Bread and Loaves** The **gst on bread** is Nil (0%) under HSN 1905. The **bread gst rate** remains Nil whether the bread is branded, packaged, or otherwise. ## **GST on Confectionery and Packaged Bakery Items** Bakery products falling under HSN 1905 now generally attract **5% GST**, including: - Cookies and biscuits - Packaged muffins - Swiss rolls - Other packaged bakery products The GST rate on pastries, cakes, biscuits and other bakers’ wares was reduced from **18% to 5%** from 22 September 2025. ## **Input Tax Credit (ITC) for Bakery Businesses** Bakery businesses can [**claim Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on: - Raw materials (flour, sugar, cream, chocolate) - Packaging materials - Bakery equipment - Utilities and rent - Marketing or delivery services Only GST-registered businesses are eligible to claim ITC on inputs taxed at 5% or 18%. ## **How to Calculate GST on Bakery Products** Calculating GST on bakery products depends on the **type of product and its applicable GST rate**. Common bakery products covered on this page generally attract **Nil or 5% GST**. You can calculate GST on bakery products using this simple formula: **GST Amount = (Product Price × GST Rate) ÷ 100** **Final Price = Product Price + GST Amount** ### **Example 1: GST on Cakes (5%)** Suppose a bakery sells a **birthday cake for ₹1,000**. - GST Rate = **5%** - GST Amount = **₹1,000 × 5% = ₹50** **Final price including GST = ₹1,050** ### **Example 2: GST on Packaged Bread (Nil)** Suppose the **price of packaged bread is ₹40**. - GST Rate = **Nil** - GST Amount = **₹0** **Final price = ₹40** ### **Example 3: GST on Unbranded Fresh Bread (Nil)** If a bakery sells **unbranded fresh bread for ₹30**: - GST Rate = **Nil** - GST Amount = **₹0** **Final price = ₹30** ## Conclusion 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## About the author **Madan Murari** Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone! ## Frequently asked questions ### What is the GST rate on bakery products in India? The **bakery gst rate** depends on the type of product: - **Nil GST** – Bread, whether branded or otherwise - **5% GST** – Cakes, pastries, biscuits, cookies, muffins, and other bakers’ wares ### Is birthday cake taxable under GST? Yes, all types of **cakes attract 18% GST**, whether **freshly made** or **pre-packaged**. ### Are small bakeries exempt from GST? Only if the **annual turnover** is below **₹20 lakh** and they don't sell **branded or packaged products**. ### Can bakeries claim Input Tax Credit (ITC) on ingredients? Yes, if **registered under GST** and selling **taxable items**, they can claim **input tax credit** on ingredients and materials. ### What is the GST rate on biscuits and cookies? Mostly **18%**, if **branded and packaged**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)