GST on Pizza: HSN Code and GST Rate of Pizza and Pizza Toppings

What is the rate of Goods and Services Tax (GST) on pizza in India? There isn't one, but multiple taxes. The GST rate on pizza bread is 5%, whereas pizza toppings are taxed at 12%. Additionally, if you eat pizza in a restaurant, it is taxed at 5% but when delivered to your home, it’s tax is 18%.

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

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. 

Pizza HSN code and GST rate

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%.

FAQs on GST on pizza

What is the GST rate for Domino's Pizza?

A 5% GST is levied on a dine-in pizza in Domino’s, whereas a pizza delivered to your home is subject to 18% GST.

What is the GST rule for food?

The GST rates on food depend on a variety of factors such as freshness, packaging, and preparation. For example, fresh vegetables are exempt from GST, whereas preserved fruits (using sugar) are taxed at 12%.

Which food items have 5 percent GST?

Spices, Indian sweets, pizza bread, and frozen vegetables are some food items with a 5% GST rate.

What is the GST on a cheese slice?

All dairy products including cheese are taxed at 12% GST.