The chocolate hsn code is 1806, covering chocolates, cocoa powder and other food preparations containing cocoa, and GST on chocolates is now 5%, down from 18% before 22 September. Toffees, candies and white chocolate (sugar confectionery without cocoa, 1704) and Indian sweets or mithai (2106) are also 5%.
A sweet shop's whole counter is therefore at 5%, except prasadam from religious places, which is nil. Read on for the codes, the cocoa test and how a sweet shop with tables is taxed. Bakery items are on the biscuit page.
Chocolate and sweets: codes and GST rates
Item / HSN / GST- Chocolates and chocolate bars5%Moved down from 18%
- Cocoa powder and drinking chocolate5%Food preparations with cocoa
- Chocolate spreads and coated items5%Cocoa preparations
- Toffees, candies, lollipops5%Sugar confectionery without cocoa
- White chocolate5%No cocoa solids
- Chewing gum5%Sugar confectionery
- Mithai: barfi, peda, laddoo, rasgulla5%Sweetmeats
- Batasha, mishri, elaichidana, gatta5%Traditional sugar sweets
- Diabetic sweets and foods5%Specific entry
- Prasadam from religious placesNilNil list
Quick facts
HSN headings
1806 chocolate, 1704 sugar sweets, 2106 mithaiGST rate
5% (2.5% CGST + 2.5% SGST)Rate before the reform
Chocolates and candy 18%, mithai 5%Digits to print
4 digits up to Rs 5 crore turnover, 6 abovePrasadam
NilCommon wrong code
1704 for chocolates that contain cocoa
Chocolate hsn code and gst rate table
| Item | HSN | GST |
|---|---|---|
| Cocoa powder, sweetened | 1806 10 | 5% |
| Chocolate in blocks or slabs above 2 kg | 1806 20 | 5% |
| Chocolate bars, filled or not | 1806 31 or 1806 32 | 5% |
| Other chocolate products | 1806 90 | 5% |
| Chewing gum | 1704 10 | 5% |
| Toffee, candy, lollipop, white chocolate | 1704 90 | 5% |
| Batasha, mishri, elaichidana | 1704 | 5% |
| Barfi, peda, laddoo, kaju katli | 2106 90 | 5% |
| Rasgulla, gulab jamun (packed) | 2106 90 | 5% |
| Diabetic food | 2106 90 91 | 5% |
| Prasadam | 2106 | Nil |
1806 hsn code gst rate: the cocoa test
Heading 1806 covers chocolate and other food preparations containing cocoa. If a sweet contains cocoa, it is usually 1806; if it has no cocoa, it is sugar confectionery under 1704. White chocolate has cocoa butter but no cocoa solids and is classed with sugar confectionery. All are 5% after the reform, so the code matters more for the HSN summary than for the tax.
Sweets hsn code and gst on sweets
Indian sweets such as barfi, peda, laddoo and kaju katli are sweetmeats under 2106 90 at 5%. Traditional sugar sweets like batasha, mishri, gatta and elaichidana are 5% under 1704. Milk based sweets sold loose or packed are still 2106. Paneer used to make them is nil; see milk.
Sweet shop with seating
A sweet shop selling boxes over the counter supplies goods at 5%. If it also serves snacks and sweets to customers at tables, that part is restaurant service at 5% without input tax credit. Many sweet shops do both, so they keep separate counters or bill heads. See restaurants.
Sweet shop invoice
Sweet shop bill to a company for Diwali gifts: Kaju katli 500 g boxes, HSN 2106 90, 200 boxes, Rs 1,20,000. Chocolate gift boxes, HSN 1806 32, 100 boxes, Rs 45,000. Taxable value Rs 1,65,000. CGST 2.5% Rs 4,125. SGST 2.5% Rs 4,125. Total Rs 1,73,250.
Festival hampers that mix sweets with dry fruits are all 5% items now, so a hamper sold at one price stays at 5%. See dry fruits.
Chocolate gst rate and makers
A chocolate maker buying sugar (5%), milk powder (5%) and cocoa (5% or 18% depending on form) and packaging at 18% may build up some credit. An inverted duty refund for inputs can be claimed on conditions. Ice cream is on the ice cream page.
Sweet shops should read this as background only. Ingredients and how food is served can change the rate, so confirm with the GST portal listing and ask a GST practitioner or chartered accountant about a sweet shop that also runs a restaurant.
Frequently asked questions
How much GST is charged on chocolates?
Chocolates under 1806 are 5% since the reform, down from 18%.
What is the sweets hsn code?
Indian sweets are 2106 90, sugar sweets such as batasha 1704, and chocolates 1806. All are 5%.
What is the 1704 hsn code?
1704 is sugar confectionery without cocoa, such as toffees, candies and white chocolate, at 5%.
Is GST charged on prasadam?
Prasadam supplied by religious places is nil rated.
What is the candy hsn code?
Candies and toffees are 1704 90, at 5%.