New GST for Bakery Products: Tax on Cakes, Bread, and Confectionery
- 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.
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.
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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% |
Bakery Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Remarks
Bakery Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Remarks
Bakery Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Remarks
Bakery Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Remarks
Bakery Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Remarks
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.
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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 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.
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