• GST on sweets

Iam a sweets manufacturer mava milk dry fruits sweets .., make sweets and sell to other shops as wholesale supplier and also some sort of retail sale.. i want to know that what is the rate of gst on sweets?
Is it different rates on every sweets ex one made of milk is under 5 percent.. if we garnish that sweet with dry fruits is comes under 12 percent heads? Is it true?
And also sweet manufacturer r laible to claim itc..? As they r not providing restaurant services
Asked 5 years ago in GST

Yes sweet shop is covered under 5% GST and they can claim ITC but since their main ingredient are exempt from tax or they purchase from unorganised sector they are not able to claim any credit and because of which prices of their sweets is increasing.

You can go through this article and get more information. https://www.google.com/amp/s/wap.business-standard.com/article-amp/news-ians/bengal-s-sweetmeat-producers-demand-exemption-in-gst-[deleted]_1.html

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

- There are only two rates in sweets category i.e. 5% and 18%. Under 5%, you can check the items covered under HSN code 1702  and under 18% HSN code is 1704.

- Yes you can claim ITC if you are completely involved in the manufacturing of sweets.

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

Hi,

 

The GST rate on Indian sweets are 5%.  I don't think there is any rate of 12% if you garnish dry fruits.

 

Further, yes you can claim ITC. However, if it's restaurant cum sweet shop, then you won't be able to claim ITC on restaurant consumptions.

Lakshita Bhandari
CA, Mumbai
5687 Answers
910 Consultations

5.0 on 5.0

Hi,

 

- 5% GST on all sorts of sweets, except some specified.

 

HSN Code falls under chapter 17 code 17049020


- Yes, you can claim ITC credit.

 

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Yes its 2106 which has been clarified by an AAR

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

The HSN code is 1704.

Lakshita Bhandari
CA, Mumbai
5687 Answers
910 Consultations

5.0 on 5.0

2106 is a primary HSN for the sweet maufacturers.

1702 and 1704 are secondary. In the sweet shop, we find all of them.

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

Yes,sweetmeats fall under GST HSN code number 2106.

 

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

If they are sweets it will go under 2106 as mentioned by AAR however if it is chocolate i.e. toffee candy then it will be covered under sugar preparation i.e. 18% tax rate.

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

18% on toffee candy.

5% on Indian Sweets.

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Hi,

You are a MANUFACTURER of sweets so HSN code applicable to you are 1702 or 1704. HSN code 2106 is for confectionery items e.g. Badam Milk is taxable @5%.

Kaju burfi - HSN code 1704 rate 12%

Khoya burfi - HSN code 1704 rate 12%

Pista burfi - HSN code 1704 rate 12%

 

Thanks

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

Please call to discuss.

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

i think 2106 is appropriate.

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

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