Biscuit HSN Code

Understanding the HSN Code for Biscuits in India

Biscuits are a staple snack in households and a significant product in the food industry. From crispy crackers to indulgent chocolate-filled cookies, the variety is immense. For manufacturers, distributors, and retailers of biscuits in India, navigating the correct Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) rate is crucial for seamless business operations and compliance.

The classification of biscuits under GST primarily falls under Chapter 19: Preparations of cereals, flour, starch or milk; pastrycooks products.

The HSN 1905 for Biscuits

The main HSN heading for biscuits and other similar baked goods is 1905: Bread, pastry, cakes, biscuits and other bakers wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.

Within this broad category, the GST rates can vary depending on the type of biscuit and its characteristics, particularly whether it’s a sweet biscuit, a plain biscuit, or contains cocoa.

Here’s a breakdown of the common HSN codes and their GST rates for biscuits:

• 19059020: Biscuits Not Elsewhere Specified Or Included
  • This is a general HSN code for biscuits that don’t fit into other specific sub-categories. Many common, plain biscuits (like glucose biscuits) fall under this code. The GST rate for these biscuits is 18%, with effective dates from November 15, 2017, and October 13, 2017. Brands like Parle-G often use this code.
• 19053100: Sweet Biscuits
  • This HSN code specifically covers sweet biscuits. These typically include cookies and other varieties with added sugar or other sweetening matter. The GST rate for sweet biscuits is 18%, with effective dates from November 15, 2017, and October 13, 2017.
• 190532 (and sub-codes like 19053290, 19053219, 19053211): Waffles And Wafers
  • This HSN heading covers waffles and wafers, which are also types of biscuits.
  • 19053290: Other Waffles And Wafers: This general code for waffles and wafers has an 18% GST rate.
  • 19053211: Waffles And Wafers – Coated With Chocolate Or Containing Chocolate: Waffles and wafers that are coated with or contain chocolate also attract an 18% GST rate.
  • The effective dates for these rates are from November 15, 2017, and October 13, 2017.

Other Bakery Products Under HSN 1905

It’s important to note that HSN 1905 covers a wide range of bakery products, not just biscuits. While most biscuits are in the 18% slab, some items within this chapter have different rates:

• 19054000: Rusks, Toasted Bread And Similar Toasted Products
  • Rusks and similar toasted products are taxed at a lower 5% GST rate, effective from October 13, 2017.
• 19059040: Papad
  • Papad also falls under HSN 1905 but has an 18% GST rate.
• 19059010: Pastries And Cakes
  • Pastries and cakes are taxed at 18% GST.

This shows that while the broader Chapter 19 is consistent, the specific nature of the baked good dictates the exact HSN sub-code and corresponding GST rate.

For businesses, accurate HSN classification is essential to ensure correct GST collection, invoicing, and timely filing of returns. Always refer to the latest GST notifications and guidelines for the most up-to-date information.