GST on Cakes and Pastries: Applicability, HSN Code and GST Rate
Goods and Services Tax (GST) applies to cakes and pastries. This article will clarify how GST affects cakes. It will also provide the HSN code for cakes and pastries. Additionally, we'll talk about the GST rate on these sweet treats and more.
Applicability of GST on cakes and pastries
Businesses exceeding a certain turnover must have a GST registration. This limit is Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Thus, if a bakery selling cakes and pastries surpasses this limit, GST is applicable. It's imperative for such businesses to track their turnover to identify GST registration needs.
GST on cakes and pastries
Cakes and pastries have an 18% GST rate. When topped with cream or chocolate, they fall under HSN code 1905. As for the mustard oil cake, it fits the HSN code 23069012, and the groundnut oil cake fits into the HSN code 2305. Both of these have a 5% GST rate.
In conclusion, for bakery businesses, tracking your turnover is crucial to knowing the applicability of GST on cakes and pastries. Different cakes, such as those with mustard or groundnut oil, have a specific HSN code. Stay aware of these distinctions to ensure your bakery operations comply with regulations and run smoothly.
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