The latest GST on bakery items has brought welcome clarity for bakers and consumers alike. After the 56th GST Council Meeting, India has unified bakery and confectionery tax rates under a 5% GST slab, effective September 22, 2025. This change simplifies compliance and reduces the overall cost of cakes, pastries, biscuits, and other bakery delights.

Key Highlights: GST Bakery Products India (2025)

• 5% GST rate now applies to cakes, pastries, biscuits, chocolates, rusks, jams, sugar confectionery, and milk-based beverages.

• No change for rusks and toasted bread — they continue at 5%.

• GST registration is mandatory for bakeries with turnover above ₹40 lakhs (goods) or ₹20 lakhs (services).

• Lower GST means reduced prices and simplified billing for bakeries and customers.

What is GST on Bakery Products?

GST on bakery products in India is the tax applied on the sale of baked and confectionery goods such as bread, cakes, cookies, pastries, chocolates, and desserts. From 2025, most of these items attract a flat 5% GST, making the tax structure straightforward for bakers and affordable for consumers.

This unified GST bakery slab replaces earlier higher rates (12% and 18%) with a lower, uniform rate — easing compliance and enhancing profit margins in the bakery sector.

GST on Cakes and Confectionery: New Rates and HSN Codes

Under this structure, the GST cake rate in India — along with pastries, muffins, and brownies — is uniformly 5%, ensuring consistent pricing across bakeries and outlets.

GST Bakery Service Tax: Applicability and Compliance

• Bakeries exceeding ₹40 lakh turnover (goods) or ₹20 lakh (services) must register for GST.

• Registered businesses must use valid HSN codes on invoices and charge 5% GST correctly.

• Input tax credit (ITC) can be claimed on eligible ingredients, packaging materials, and utilities.

• Update all POS systems, invoices, and pricing to reflect the revised GST rates.

Impact on Bakers and Consumers

For Bakers

• Reduced GST rates lower working capital pressure and improve profit margins.

• Simplified slabs reduce compliance effort and accounting errors.

• More competitive pricing encourages higher sales.

For Consumers

• Expect lower prices on bakery favorites — cakes, cookies, pastries, and chocolates.

• Transparent pricing as GST is clearly applied at 5%.

• Better access to quality bakery goods at affordable rates.

FAQs on GST for Bakery Products

1. How much is GST on cakes and pastries?
Cakes, pastries, and similar bakery products are taxed at 5% GST under HSN 1905.

2. Is bakery business exempt from GST?
No. Bakeries are not exempt; they fall under the GST bakery slab of 5%.

3. What is the GST on confectionery 2025?
Sugar-based confectionery and chocolates are charged 5% GST as per the revised 2025 slab.

4. What is the GST cake rate in India?
All varieties of cakes — including brownies, pastries, and muffins — attract a flat 5% GST.

5. Does GST apply to bakery services?
Yes. If the bakery offers dine-in or catering services, the applicable GST bakery service tax may be 5% or 18%, depending on the nature of service and ITC eligibility.

Conclusion

The 2025 reform makes GST on bakery products simpler and fairer. Whether it’s bread, cookies, or cakes, almost all bakery and confectionery items now attract just 5% GST, down from 12–18%. With this unified GST bakery slab, both bakers and buyers benefit — affordable prices for customers and easier compliance for businesses.

Also Read:
Complete GST Rate List 2025: Updated Slabs for Goods & Services
New GST Rates for Wellness & Beauty in 2025
GST Rate for Food & Beverages in India (2025)