GST on Cakes and Pastries: Applicability, HSN Code and GST Rate

Introduction

GST on cakes and pastries is now easier for businesses after the 56th GST Council meeting, with rates unified at 5% for most bakery and confectionery products effective 22nd September 2025. This major reform not only lowers prices but also clarifies compliance for bakers.

Key Takeaways

• 5% GST now applies to cakes, pastries, biscuits, chocolates, extruded snacks, jams, sugar-boiled confectionery, and milk-based beverages
• Rusks and toasted bread retain the 5% rate
• GST registration mandatory for bakeries with annual turnover over ₹40 lakhs for goods or ₹20 lakhs for services.
• Clear HSN codes must be used for invoicing and compliance
• Bakers need to revise their documentation, POS, and pricing post-reform

What is GST on Cakes and Pastries?

GST on cakes and pastries is a tax charged on the sale of these bakery products in India, now mostly at 5% after the 56th Council meeting. It aims to streamline compliance and reduce tax burdens for both businesses and consumers.

Applicability of GST on Cakes and Pastries

• GST registration is required for bakeries with annual turnover over ₹40 lakhs for goods or ₹20 lakhs for services.
• Registered bakeries must charge GST, display HSN codes, and issue compliant invoices.
• Only GST-registered firms can claim input tax credits on bakery supplies and ingredients.

GST on Cakes and Pastries (Rates Table)

Impact of the 56th Council Meet and What Bakers Need to Do

The latest rate reductions offer cost savings for both bakers and customers. Bakers must:

• Update POS, billing, and accounting systems to apply the 5% rate.
• Ensure accurate HSN codes and invoices for every sale.
• Monitor turnover to ensure timely GST registration, and claim eligible input tax credits.
• Adjust product pricing in line with the lower GST rate for competitiveness and compliance.