GST on Pizza: Latest Rates, Applicability and HSN Code

What is the rate of Goods and Services Tax (GST) on pizza in India? There isn't one, but multiple taxes. In the 56th GST Council meeting, it was decided that pizza bread and toppings will have separate tax rates. Dining in at a restaurant will be taxed differently from home delivery, with expected changes in the tax structure.

Read along as we talk more about GST on pizza in India. We'll also discuss the HSN code for pizza and the GST rate for pizza toppings.

Key Takeaways

The 56th GST Council meeting has announced important updates with changes effective from 22nd September 2025:

• GST on Pastries, cakes, biscuits, and other baked goods (excluding bread, pizza bread, khakhra, chapathi, roti) has been reduced from 18% to 5%.
• GST on Pizza bread has been reduced from 5% to Nil.

Scope of Taxation on Pizza

In the past, various pizza GST rates were depending on how they were made and sold. For instance, a lower GST rate of 5% applied to pizzas eaten at a restaurant. While a home-delivered pizza was subject to an 18% GST rate, purchasing a pizza base separately was charged a 12% GST.

Moreover, the Haryana Appellate Authority for Advance Ruling (AAAR) raised the GST rate for pizza toppings, classifying them as distinct food items from pizza.

Pizza toppings GST, according to the AAAR, should be taxed differently and subject to a higher rate of 18%. They emphasised that although pizza toppings are advertised as cheese toppings, cheese is not present. In fact, they contain a sizable amount of vegetable fat (22%).

The AAAR also concluded that pizza toppings should be categorised as ‘food preparation’ rather than ‘cheese, processed or not,’ based on this examination. 

GST Rate on Pizza and HSN Code

Here is a tabular representation of GST on pizza with HSN code:

Advance Rulings on Pizza

Advance ruling refers to a written opinion or authoritative decision issued by an Authority regarding the tax ramifications of a transaction.

Here is an advance ruling related to the pizza GST rate:

Case:

A distributor of dairy and non-dairy products sought an advance ruling to determine the classification and taxability of pizza toppings. The AAR initially ruled that pizza toppings cannot be classified as processed cheese under heading 0406, but should be classified under heading 2106. However, the applicant wasn’t satisfied with this so they filed for an appeal. 

Ruling: The AAR went through the case and noted that pizza toppings contain 22% vegetable fat, while mozzarella cheese contains only 14.5%. Since vegetable fat is not a prescribed ingredient for processed cheese, the product cannot be classified as cheese under heading 0406. Instead, the product, being an edible preparation for human consumption, should be classified under Chapter 21. Moreover, as it does not fall under any specific entry, it is classified under the residual entry ‘food preparations not elsewhere specified’ under tariff item 21069099. Consequently, the product is subject to a GST rate of 18%.

Conclusion

That was everything about the GST on pizza in India. But, not all food items are taxable under GST. For example, fresh food items such as vegetables, fruits, and meat are not exempt from GST. Whereas, GST on other food items does not go higher than 18%.