The document discusses the implications of Goods and Services Tax (GST) on bakery products in India, highlighting the necessity for GST registration for businesses surpassing certain turnover thresholds. It also outlines varying GST rates for different bakery items and explains the process for claiming input tax credit on ingredients used in bakery production. Additionally, it covers due dates for GST payments and the classification of bakery products using HSN codes.

1. GST on Bakery Products
The Goods and Services Tax (GST) is a significant tax reform in India that
aims to simplify the indirect taxation system. It has streamlined the
taxation of goods and services across the country. Bakery products,
which are an integral part of our daily lives, also come under the purview
of GST. In this article, we will explore the various aspects of GST as it
applies to bakery products.

2. Applicability of GST Registration for Bakery Products
GST registration is mandatory for businesses that have an aggregate
turnover exceeding a certain threshold. The threshold for GST
registration was ₹40 lakhs (for goods) and ₹ 20 lakhs for most states in
India. Bakery product businesses need to monitor their turnover to
determine whether GST registration is required.
Rate of GST on Bakery Products
The Goods and Services Tax (GST) rates on bakery products in India vary
depending on the nature and ingredients of the products. Here are the
general GST rates for bakery products:
Basic bakery products such as bread and plain buns, without any
additional toppings or fillings, typically attract a lower GST rate of 5%.
Bakery products with chocolate or cream toppings, as well as other
confectionery items, generally fall into the higher GST rate category of
18%.
Some specialty bakery items like pastries, cookies, and other similar
products may also be categorized under the 18% GST rate.

3. Input Tax GST Credit on Bakery Products Supplier
Under the Goods and Services Tax (GST) system in India, businesses can
claim Input Tax Credit (ITC) on the GST they have paid on their purchases,
including bakery products and ingredients. Here's how ITC works for
bakery product suppliers:
1. Eligibility for ITC: To be eligible to claim ITC, a business should be a
registered taxpayer under GST. If you are a bakery product supplier,
you need to ensure that you have a valid GST registration.
2. ITC on Bakery Ingredients: Bakery owners can claim ITC on the GST
paid for the purchase of ingredients such as flour, sugar, milk, eggs,
flavorings, and any other inputs used in the production of bakery
products. This ITC can be offset against the GST liability on sales.
3. Records and Invoices: Proper maintenance of invoices and records
is crucial. Both suppliers and buyers need to maintain accurate
records of GST invoices and transactions to claim ITC. Invoices
should mention the GST details of the supplier and the recipient,
the HSN code of the products, and the amount of GST paid.
4. Matching of Invoices: The GST Network (GSTN) portal facilitates
the matching of invoices between suppliers and buyers. This
ensures that the details of the supplier's GST return match with the
buyer's GST return, thus preventing any discrepancies.
5. Timely Filing of GST Returns: To claim ITC, it's essential to file your
GST returns regularly and accurately. The ITC amount can only be
claimed if the details match the invoices uploaded by your suppliers
in their GST returns.

4. 6. Reversal of ITC: In some cases, ITC might need to be reversed if the
recipient has not paid the supplier within 180 days from the date
7. of issue of the invoice. Reversal can also happen if there is a
discrepancy or mismatch in the invoices.
8. Cross-Verification: The GST authorities may cross-verify ITC claims
and conduct audits to ensure that ITC is being rightfully claimed.
Therefore, maintaining accurate records and compliance is crucial.
GST Payment Due Date
The due date for GST payment on bakery products depends on various
factors, including the type of taxpayer, their turnover, and whether they
are filing monthly or quarterly returns. Here are the general due dates
for GST payment:
 For Regular Taxpayers (Monthly Filers): Monthly GST payment is
typically due on the 20th of the following month. For example, the
GST liability for June should be paid by the 20th of July.
 For Composition Taxpayers (Quarterly Filers): Composition
scheme taxpayers usually pay GST on a quarterly basis. The due
date for payment is the 18th of the month following the end of the
quarter.
For example, for the April-June quarter, the GST payment is due
by July 18th.
 For Non-Resident Taxpayer: Non-resident taxpayers are required
to pay GST on the 20th of the month following the end of the tax
period, irrespective of whether they are monthly or quarterly filers.

5. Please note that the due dates for GST payment may vary for specific
categories of taxpayers or under different circumstances.
HSN Code for Bakery Products
Harmonized System of Nomenclature (HSN) codes are used to classify
goods for taxation purposes under the Goods and Services Tax (GST) in
India. HSN codes are essential for accurately identifying and categorizing
products. The specific HSN code for bakery products can vary depending
on the exact type of product. Here are some common HSN codes for
bakery products:
HSN Code for Bread: 1905
This code typically applies to bread, including various types such as white
bread, wheat bread, and other varieties.
2. HSN Code for Biscuits and Cookies: 1905
The same HSN code 1905 is commonly used for biscuits and cookies. The
differentiation between various types of biscuits and cookies can often
be done based on product descriptions.
3. HSN Code for Cakes and Pastries with Cream or Chocolate
Toppings: 1905
Cakes and pastries with cream or chocolate toppings usually fall under
HSN code 1905. The specific type of cake or pastry can be described
separately.

6. 4. HSN Code for Unsweetened Biscuits: 1905
Unsweetened biscuits are often categorized under the same HSN code
1905, but their classification can be based on product descriptions.
It's important to note that the HSN code for a specific bakery product
may vary based on its ingredients and characteristics. Bakery owners and
suppliers should carefully select the most appropriate HSN code to
ensure accurate tax calculations and compliance with GST regulations.
To find the precise HSN code for a particular bakery product, you can
refer to the official GST portal.
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