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Coffee is more than just a beverage—it’s a habit, a business, and even a global commodity. In India, coffee lovers enjoy it in many forms: ground, roasted, filter, or instant. But do you know how much tax you’re paying on your daily cup? This blog breaks down the gst on coffee, covering everything from raw beans to instant packs.
The GST Council has classified coffee based on its form and processing level. Each type carries a different GST rate depending on how ready it is for consumption.
| Coffee Type | HSN Code | GST Rate |
|---|---|---|
| Raw coffee beans (unprocessed) | 0901 | 0% (Exempt) |
| Roasted coffee beans | 0901 | 5% |
| Coffee powder (not instant) | 0901 | 5% |
| Instant coffee (spray/dried) | 2101 | 18% |
| Coffee substitutes (chicory mix) | 2101 | 18% |
Regular filter or ground coffee used for home brewing falls under HSN code 0901. The coffee powder gst rate is 5% and applies to:
Instant coffee, including spray-dried or freeze-dried varieties, undergoes heavy processing and packaging. Hence, it attracts a higher tax.
The gst rate on instant coffee is 18%, under HSN code 2101. Applies to:
If you’re in the business of trading, processing, or serving coffee (e.g., café, distributor, manufacturer), you may be eligible to claim Input Tax Credit on:
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Whether you’re a coffee lover or run a coffee business, understanding the gst on coffee helps in better cost planning and compliance. From bean to brew, the tax rate changes with how your coffee is prepared.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.