If you own a bakery, sell confectionery products, or simply buy cakes and cookies, it’s important to understand how GST on bakery products is applied. Unlike packaged food items that often fall into fixed slabs, GST rates for bakery items vary depending on whether they are fresh, branded, or packaged.
With the new GST rate changes after 22 September 2025, many bakery businesses and consumers need clarity on the updated slabs. Here’s a complete guide to the HSN codes and GST rates for cakes, bread, biscuits, and confectionery items.
The 12% GST slab is no longer standard – most items earlier under 12% now shift to 5%.
High-tax items at 28% have been revised to 18%.
A 40% GST rate applies only to a small set of luxury or demerit products.
Fresh, unbranded bakery items continue to enjoy GST exemption.
| Bakery Product | HSN Code | New GST Rate | Remarks |
|---|---|---|---|
| Fresh, unbranded bread | 1905 | 0% | GST exempt if unbranded & unpackaged |
| Branded or packaged bread | 1905 | 5% | Labelled or packaged loaves attract GST |
| Cakes (fresh or packaged) | 1905 | 5% | Includes birthday cakes, plum cakes, etc. |
| Pastries & muffins | 1905 | 5% | Applies to chocolate, cream-filled, or flavored |
| Biscuits & cookies | 1905 | 5% | Branded & packaged snack biscuits |
| Sweet bakery items (barfi, rolls, etc.) | 1904 / 2106 | 5% or 18% | 5% where earlier 12% applied, else 18% |
Unbranded fresh bread is fully GST exempt (0%).
Branded, packaged, or flavored bread (such as sweet bread, garlic bread, or multigrain loaves) attracts 5% GST.
Any bread that is processed, preserved, or packaged is taxable under HSN 1905.
Branded biscuits and cookies attract 18% GST.
This includes digestive biscuits, chocolate-coated cookies, and packaged snack-type biscuits.
Confectionery products like Swiss rolls, candy-filled bakery items, and sweet rolls fall under HSN 1904 or 2106 with GST rates of 5% or 18%, depending on ingredients and packaging.
| Bakery Product | HSN Code | Old GST Rate | New GST Rate (After Sep 2025) |
|---|---|---|---|
| Unbranded fresh bread | 1905 | 0% | 0% (no change) |
| Branded or packaged bread | 1905 | 5% | 5% (no change) |
| Cakes (fresh or packaged) | 1905 | 18% | 5% (no change) |
| Pastries & muffins | 1905 | 18% | 5% (no change) |
| Biscuits & cookies | 1905 | 18% | 5% (no change) |
| Sweet bakery items | 1904 / 2106 | 12% or 18% | 5% or 18% (updated slab) |
If you run a bakery, café, or confectionery business, GST registration allows you to claim Input Tax Credit (ITC). ITC reduces your tax liability by adjusting the GST you pay on raw materials and services.
Eligible ITC claims include:
Raw materials: flour, sugar, butter, chocolate, cream
Packaging material: boxes, wraps, labels
Bakery equipment & ovens
Electricity, water, and shop rent
Marketing expenses & delivery services
Only GST-registered bakeries can claim ITC on inputs taxed at 5%, 12%, or 18%.
Whether you are:
A home baker in India selling cakes online,
A confectionery shop owner in your local market, or
A large-scale bakery brand,
You must apply the correct GST rate on bakery products to remain compliant. Misclassifying items can lead to penalties or overpricing that affects sales.
By knowing the right HSN codes and GST slabs, bakeries can:
Price their products correctly
Claim input tax credits effectively
Stay competitive in the food & beverage industry
The new GST rates on bakery products in India (effective after 22 September 2025) bring more clarity for bakers and customers alike. While bread continues to be GST-free if unbranded, products like cakes, pastries, biscuits, cookies, and confectionery remain under 18% GST. Sweet bakery items previously at 12% are now shifted to 5% or 18%, depending on ingredients.
For bakery owners, staying updated with GST rules, HSN codes, and ITC benefits ensures tax compliance and transparent pricing. For consumers, it helps in understanding why certain products cost more when branded or packaged.
Understanding GST on cakes, GST on bread, GST on biscuits, and GST on confectionery is essential for every stakeholder in the bakery industry.
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