--- title: "New GST on Coffee 2026: 5% / 18% Rate on Coffee Powder, Instant" description: "New GST rate on coffee powder in 2026 is 5% to 18% on roasted and instant coffee. Stay GST-compliant with Busy and apply the correct rate automatically." canonical: "https://busy.in/gst-rates/coffee-powder/" author: "Apurva Maheshwari" published: "2025-05-16T13:07:06.000Z" category: "GST Rates" --- - **Raw, unroasted coffee beans** under HSN 0901 are **Nil-rated**, while roasted coffee beans and ground/filter coffee under HSN 0901 attract **5% GST**. - **Instant coffee, coffee extracts and coffee-based preparations** under HSN 2101 now attract **5% GST**, reduced from the earlier 18% from **22 September 2025**. - **Roasted chicory and other roasted coffee substitutes** under HSN 2101 30 also attract **5% GST**, reduced from the earlier 12%. - Businesses dealing in taxable coffee products can claim **Input Tax Credit on eligible inputs and input services**, subject to GST rules. ITC attributable exclusively to Nil-rated supplies is generally not available. - Correct HSN codes must be used for GST compliance: **0901 for coffee beans, roasted or ground coffee, and 2101 for instant coffee, coffee extracts and specified coffee preparations**. - Coffee traders dealing in both Nil-rated and taxable products should maintain proper records and apply the correct GST rate based on product classification. # New GST on Coffee: Tax Rate on Instant, Filter, and Roasted Coffee 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. ## **New GST Rate on Coffee in India** From **22 September 2025**, revised GST rates apply to certain coffee products. Instant coffee, coffee extracts and specified coffee substitutes that earlier attracted higher GST rates now attract **5% GST**. ## **Coffee Categories Under New GST** | Coffee Type | HSN Code | Current GST Rate | | --- | --- | --- | | Raw coffee beans, not roasted | 0901 | **Nil** | | Roasted coffee beans | 0901 | **5%** | | Ground/filter coffee | 0901 | **5%** | | Instant coffee, coffee extracts and concentrates | 2101 11 / 2101 12 | **5%** | | Roasted chicory and other roasted coffee substitutes | 2101 30 | **5%** | **Note:** From **22 September 2025**, instant coffee, coffee extracts and coffee-based preparations under HSN 2101 11/2101 12 moved from **18% to 5%**, while roasted chicory and other roasted coffee substitutes under HSN 2101 30 moved from **12% to 5%**. Raw unroasted coffee beans remain Nil-rated, while roasted and ground coffee under HSN 0901 continue to attract **5% GST**. ## Coffee Categories Under Old GST ### (Old GST Rates – Applicable Until 21st September) 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% | ## Coffee Powder GST Rate Regular filter or ground coffee used for home brewing falls under HSN code 0901. The **coffee powder gst rate** is 5% and applies to: - Filter coffee powder - Roasted & ground beans - Non-instant varieties Live Demo Available Today ## Selling Expired Stock By Mistake? Avoid It With Batch Tracking. Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST Rate on Instant Coffee** Instant coffee, including spray-dried and freeze-dried varieties, falls under **HSN 2101**. The **GST rate on instant coffee is 5% from 22 September 2025**, reduced from the earlier 18% rate. This includes: - Instant coffee sachets and jars - Coffee extracts and concentrates - Coffee-based preparations under HSN 2101 11/2101 12 Roasted chicory and other roasted coffee substitutes under **HSN 2101 30** also attract **5% GST**. **Note:** The exact HSN code for coffee premixes or coffee-chicory blends depends on their composition and classification. ## GST Input Tax Credit for Coffee Businesses 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**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on: - Packaging materials - Equipment (grinders, roasters) - Marketing services - Logistics and delivery costs ## **GST Compliance Tips for Coffee Traders** - Use the correct **HSN code**: 0901 for coffee beans and roasted/ground coffee, and 2101 for instant coffee, coffee extracts and specified coffee preparations - Apply the correct GST rate: **Nil or 5%**, depending on product classification - File **GST returns** regularly - Maintain separate records for **Nil-rated and 5% taxable coffee products** ## Conclusion 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. ## About the author **Apurva Maheshwari** I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant. ## Frequently asked questions ### What is the GST on coffee in India? The GST rate depends on the type of coffee: - **Raw, unroasted coffee beans:** Nil - **Roasted or ground coffee:** 5% - **Instant coffee and coffee extracts:** 5% The applicable rate depends on the product classification and HSN code. ### What is the coffee powder GST rate? **5%** on roasted and ground coffee powder, not instant. ### What is the GST rate on instant coffee? **Instant coffee attracts 5% GST** under HSN **2101** from **22 September 2025**, reduced from the earlier 18% rate. ### Can a coffee café claim GST Input Tax Credit? Yes, cafés and coffee businesses can [**claim ITC**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on all purchases related to their taxable sales. ### Is chicory coffee mix also taxed at 18%? No. **Roasted chicory and other roasted coffee substitutes under HSN 2101 30 attract 5% GST**. Coffee-based preparations under the applicable HSN 2101 classification also generally attract **5% GST from 22 September 2025**. The exact HSN code depends on the composition and classification of the coffee-chicory product. ## 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/)