New GST on Coffee: Tax Rate on Instant, Filter, and Roasted Coffee
- 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.
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.
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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% |
Coffee Type
HSN Code
Current GST Rate
Coffee Type
HSN Code
Current GST Rate
Coffee Type
HSN Code
Current GST Rate
Coffee Type
HSN Code
Current GST Rate
Coffee Type
HSN Code
Current GST Rate
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 Type
HSN Code
GST Rate
Coffee Type
HSN Code
GST Rate
Coffee Type
HSN Code
GST Rate
Coffee Type
HSN Code
GST Rate
Coffee Type
HSN Code
GST Rate
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
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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 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.
