A Guide to GST Rates on Food Preparations Under HSN Code - 2106

Assume one day you wake up early in the morning, drink a container of water and realize your stomach is purged. You want something to eat to energize your body, so you rapidly run to the kitchen and open the fridge. To your astonishment, you discover nothing left—no drain, no bread, no fruits, not indeed any remains from the final night. How would you feel? Of course, not awesome!

Presently, envision waking up in the morning and heading to your dairy shop, as it were to say that they do not have any drain to provide for you. How would you be feeling at that point? After all, we all despise beginning our day without a container of tea or coffee. That's when it hits you—how critical nourishment is for living creatures.

Throughout history, the food search has shaped human life, and it will always remain extremely important. Naturally, food also falls under different tax slabs, with GST rates of 5%, 12%, or 18%, depending on the type of item.

Food preparations not in other places specified (NES) fall under HSN Code 2106 in India. This category includes a wide range of able-to-be-eaten products that don't fit into clearly stated/particular classifications, such as protein, flavored syrups, and food beverages. The GST rates for these items differ, usually ranging from 5% to 18%, depending on the product type. These classifications help maintain a taxation system for food-related products.

Overview

The HSN code is an internationally recognized system that helps categorize and differentiate products. It plays an important role in trading goods and services, both in India and across the world. This coding system ensures that products are correctly identified for taxation and compliance, with the code structure extending based on business turnover to align with GST regulations. When it comes to chips and other food preparations, they fall under HSN Code 2106, which is listed in Chapter 21 of Miscellaneous Edible Preparations. The GST rate for these items varies depending on their specific classification.

What is the HSN Code?

The HSN (Harmonized System of Nomenclature) code helps categorize products according to their features and specifications.

Importance in GST

HSN codes help differentiate products from one another, making taxation and trade classification easier.

Why is the HSN Code Used?

Instead of providing lengthy product descriptions, businesses can use HSN codes to simplify documentation and compliance.

Mandatory for High Turnover Businesses

Businesses with an annual turnover exceeding Rs.5 crore must include HSN/SAC-specific sales details in their GSTR-1 filing.

HSN Code	Description	GST Rate (%)
2106	Food Preparations (NES)	5/12/18
21061000	Protein Concentrates & textured protein substances	5/12/18
210690	Other food preparations (NES)	5/12/18
21069011	Soft drink concentrates( sharbat)	5/12/18
21069019	Soft drink concentrates( other)	5/12/18
21069020	Pan Masala	28
21069030	Betel Nut Product (Supari)	5/12/18
21069040	Sugar syrups & similar preparations	5/12/18
21069050	Non- Alcoholic Beverage Mixes	5/12/18
21069060	Food Flavoring Material	5/12/18
21069070	Churna for Pan	5/12/18
21069080	Custard Powder	5/12/18
21069091	Diabetic Foods	12
21069092	Sterilized/Pasteurized Milestone	5/12/18
21069099	Other Food Preparations(NES)	5/12/18

Here’s a breakdown of the classification under HSN Code 2106:

You Can Also Read: GST on Vegetables & Fruits with HSN Code

Impact of GST on Food Preparations

1. Reduced Tax Burden: Many food products were earlier taxed at 28% but have now been shifted to lower slabs (5% or 12%), making them more affordable.

2. Encouragement for Processed Foods: GST classification has made processed food products fall under uniform tax slabs, simplifying compliance for businesses.

3. Higher Tax on Luxury Items: Items like Pan Masala remain at a high GST rate of 28% with an additional 60% CESS, discouraging excessive consumption.

Who Needs to Apply for HSN Code 2106?

Businesses dealing in food preparations falling under this category must:
1. Use HSN Code 2106 while filing GST returns.2. Ensure correct GST rates are applied to avoid tax penalties.
3. Maintain compliance, especially if turnover exceeds Rs.5 crore (requires mentioning HSN/SAC codes in GSTR-1).

You Can Also Read: Difference between HSN & SAC Codes in GST

Conclusion

HSN Code 2106 simplifies tax classification for food preparations that don’t fit into other categories. While most food products are taxed at 5% or 12%, some value-added or luxury items fall under 18% or 28% GST slabs. Businesses need to stay updated with tax changes to ensure compliance and proper pricing.

FAQs

1. What food items fall under HSN Code 2106?

HSN Code 2106 includes food products that don't belong to clearly stated/particular categories, such as protein, food flavoring materials, and sugar syrups.

2. How much GST do products in HSN Code 2106 get?

The GST for products in HSN Code 2106 ranges between 5% and 18%, depending on the type of food. For example, basic food items have 5%, while things like diabetic foods are taxed at 12%.

3. Are there any exceptions with a higher GST rate?

Yes, pan masala falls under this category, and it’s taxed much higher at 28% GST, plus a hefty 60% cess on top of that.

4. Can you give examples of food products under this HSN code?

Sure! It includes things like protein concentrates, beverage mixes, flavored syrups, and even diabetic foods. It’s a pretty broad category.

5. How does GST change the price of food under HSN Code 2106?

Food under HSN Code 2106 used to have a 28% tax, but now the tax is lower, around 5% or 12%, making these items cheaper for customers.

6. Do businesses need to file these HSN codes when filing GST?

Yes, businesses need to include the right HSN code in their GST returns. If their turnover is over Rs.5 crore, they must also mention these codes in their GSTR-1.

7. Is the GST rate the same for all products in HSN Code 2106?

No, the GST rate changes for different products in this category. Some may have 5%, while others could be 12% or 18%, depending on what they are.

8. Why do some items get a higher GST rate?

Some products, like pan masala, are taxed higher because they’re seen as luxury items. That’s why pan masala has a 28% GST rate plus an extra 60% cess.

9. Do GST rates change for these food products in different states?

No, the GST rates are the same for these products all over India. Any differences would be in local taxes or how they are applied.

10. How can businesses stay compliant with GST for food preparations?

They need to make sure they’re using the correct HSN codes on their GST returns and staying updated on any rate changes. If their business makes more than Rs.5 crore, they must also list these codes in their GSTR-1 to avoid any penalties.