The tea hsn code is 0902 for black, green and flavoured tea, and the coffee code is 0901 for roasted coffee beans and powder, and GST on tea and coffee is 5%. Instant coffee and tea extracts under 2101 are also 5% now, down from 18% before the reform.
Fresh green leaves sold by a tea garden and raw coffee beans that are not roasted are nil rated. This page lists the codes, a tea wholesaler's bill and how tea sold in a cafe is taxed. Sugar and milk for the same cup are on the sugar and milk pages, and other kitchen staples are listed from the food hub.
Tea and coffee: codes and GST rates
Item / HSN / GST- Black tea, CTC and leaf tea5%Bulk packs 0902 40
- Green tea5%Bulk green tea 0902 20
- Flavoured tea and masala tea5%Tea with spices or flavours
- Unprocessed green tea leavesNilFresh leaf from the garden
- Coffee, roasted, beans or ground5%Decaffeinated 0901 22
- Coffee beans, not roastedNilRaw coffee
- Instant coffee and coffee extracts5%Moved down from 18%
- Tea extracts and instant tea premix5%Tea preparations
- Chicory, roasted5%Coffee substitutes
- Tea served in a cafe5% (no ITC)Restaurant service
- Coffee mugs of ceramic5%Tableware
Quick facts
HSN headings
0902 tea, 0901 coffee, 2101 extractsGST rate
5% (2.5% CGST + 2.5% SGST)Nil items
Fresh green tea leaves, raw coffee beansRate before the reform
Instant coffee 18%; tea and roasted coffee 5%Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
2101 for plain tea leaves
Tea hsn code and gst rate table
| Product | HSN | GST |
|---|---|---|
| Green tea, packets up to 3 kg | 0902 10 | 5% |
| Green tea, other | 0902 20 | 5% |
| Black tea in packets up to 3 kg | 0902 30 | 5% |
| Black tea in bulk (CTC, leaf, dust) | 0902 40 | 5% |
| Unprocessed green tea leaves | 0902 | Nil |
| Raw coffee beans | 0901 11 | Nil |
| Roasted coffee beans | 0901 21 | 5% |
| Ground coffee, filter coffee | 0901 21 or 0901 22 | 5% |
| Instant coffee | 2101 11 | 5% |
| Coffee with chicory mixtures | 2101 12 | 5% |
| Instant tea, tea premix | 2101 20 | 5% |
Tea powder hsn code
Tea powder in the market is usually CTC or dust grade black tea, which is 0902 30 when packed in retail packets up to 3 kg and 0902 40 in larger bulk packs. Both are 5%. Masala tea with added spices stays in 0902 when tea gives it the main character. A tea blender buying from auctions and selling packets pays and charges 5%.
Coffee powder hsn code and gst rate
Roasted coffee, whole or ground, is 0901 21 (not decaffeinated) or 0901 22 (decaffeinated) at 5%. Filter coffee powder with chicory is often billed under 2101 12 as a mixture, also 5%. Raw coffee beans sold by planters are nil.
Instant coffee and the reform
Extracts, essences and concentrates of coffee, including instant coffee, moved from 18% to 5% in the reform. Instant tea and premixes under 2101 20 are 5% as well. Cafes that buy instant coffee in bulk now pay less tax on that input, though their own 5% restaurant rate gives no credit.
Tea wholesaler's invoice
Tea wholesaler to a kirana store: Black tea CTC 1 kg packs, HSN 0902 30, 100 packs, Rs 38,000. Instant coffee 200 g jars, HSN 2101 11, 50 jars, Rs 17,500. Taxable value Rs 55,500. CGST 2.5% Rs 1,387.50. SGST 2.5% Rs 1,387.50. Total Rs 58,275.
Tea and coffee in cafes and offices
Tea or coffee served in a cafe, dhaba or office canteen is restaurant service at 5% without credit. A vending machine operator selling tea from machines in offices may be supplying goods or a service depending on the contract. Coffee mugs are ceramic tableware under 6912 at 5%; see crockery.
Tea traders and coffee roasters should read this as background only. Blends, premixes and plantation sales have their own details, so check the GST portal and ask a GST practitioner or chartered accountant about auction and estate sales.
Frequently asked questions
How much GST is charged on tea?
Tea under 0902 is taxed at 5%. Fresh, unprocessed green tea leaves are nil.
What is the tea powder hsn code?
Packed tea powder is usually 0902 30, at 5%.
What is the coffee hsn code?
Roasted coffee is 0901 21 and instant coffee 2101 11, both at 5%.
What is the GST on instant coffee?
5% since the reform, down from 18%.
What is the green tea hsn code?
Green tea is 0902 10 or 0902 20, at 5%.