GST Rate and HSN Code for Miscellaneous Edible Preparations (Chapter 21) The Goods and Services Tax (GST) in India brought new changes to indirect taxation through a system that sought both state-wide consistency and easier administrative tasks.
Manufacturers, suppliers, along with food traders must have detailed knowledge about the GST rates and HSN codes that apply to their products. We concentrate on Chapter 21 under the HSN classification system in this discussion because it addresses various edible food preparations . This guide serves business operators of ready-to-eat food mixes and protein concentrates together with flavouring powders by providing details about applicable HSN codes and GST rates as well as exemptions and compliance obligations.
What is Chapter 21 of HSN? Chapter 21 under the Harmonized System of Nomenclature (HSN) covers Miscellaneous Edible Preparations. This chapter incorporates all processed food items that do not belong in different sections and includes:
Food preparations not elsewhere specified
Ice cream mixes and powders
Protein concentrates and textured protein substances
Instant food mixes
Coffee and tea-based preparations
Sauces and condiments
Culinary preparations
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Key HSN Codes in Chapter 21 The following codes show Chapter 21 HSN codes that include their descriptions together with GST rates:
HSN Code Category Includes / Description Examples GST Rate 2101 Extracts, Essences, and Concentrates Extracts, essences, and concentrates of coffee, tea, or mate; preparations with a basis of coffee, tea, or mate Instant coffee, coffee mixes with chicory, and tea concentrates 18% 2102 Yeasts, Baking Powder, and Ferments Active and inactive yeasts, baking powders, prepared baking inputs Dry yeast, leavening agents, ready-to-use baking mixes 18% 2103 Sauces and Mixed Condiments Soya sauce, tomato ketchup, mustard sauce, mixed condiments and seasonings, flavouring powders Chinese sauces, curry powder, spice mixes 12% or 18% (depending on product) 2104 Soups and Broths Instant soup preparations, broth powders, and concentrates Dehydrated soup mix, powdered broth 18% 2105 Ice Cream and Frozen Dessert Mixes Ice cream and similar edible ice preparations, premixes for frozen desserts Ice cream powders, frozen yogurt bases 18% 2106 Other Edible Preparations Not Elsewhere Specified Protein concentrates, nutritional and dietary supplements, instant food mixes, pan masala (not elsewhere classified), other general edible preparations Health drinks, protein powders, falooda mix, gulab jamun mix, and sharbat concentrates 5% to 28% (depending on product)
GST Rate Overview for Miscellaneous Edible Preparations Here is a consolidated table for easy reference:
HSN Code Product Description GST Rate 2101 Instant coffee, tea extracts 18% 2102 Yeasts, baking powders 18% 2103 Sauces, condiments, and seasoning 12% / 18% 2104 Soups, broths 18% 2105 Ice cream mix, frozen dessert mix 18% 2106 Other edible preparations (protein powders, health drinks, pan masala, etc.) 5% – 28%
Input Tax Credit (ITC) and Compliance Businesses dealing with Chapter 21 products can claim Input Tax Credit (ITC)
They are registered under GST
The goods are used in the course or furtherance of business
The supplier has uploaded the invoice in their GSTR-1 and filed GSTR-3B
Important: Products like Pan Masala attract Compensation Cess
GST Exemptions under Chapter 21 Most products under Chapter 21 are taxable. However, the GST Council has exempted certain nutritional food items supplied under government schemes like ICDS (Integrated Child Development Scheme) or mid-day meals , even if classified under 2106.
Example:
Fortified blended foods supplied to government departments under public nutrition programs may be exempt.
Make sure to check with the latest notifications and circulars for applicability in your specific case.
Labelling and Classification Tips Accurate HSN classification is essential to:
Avoid penalties
Ensure proper ITC
File accurate returns
Here are a few tips:
Classify based on composition , not just brand name
If the product contains a combination of nutrients , it might fall under 2106 as a nutraceutical or dietary supplement
Label ingredients and intended use clearly to support classification during assessment
Case Laws and Rulings Several Advance Rulings (AAR) have clarified the classification under HSN 2106:
AAR, Karnataka – M/s Kempegowda Institute of Medical Sciences : Protein supplements prescribed by doctors were classified under HSN 2106 and taxed at 18%
AAR, Gujarat – M/s Nestle India Ltd. : Instant food mixes like gulab jamun mix and falooda mix fall under HSN 2106 at 18%
These rulings help in understanding how GST officers view classification in practice.
How to Calculate GST on Edible Preparations? Let’s say you are selling a protein powder (HSN 2106) for ₹500:
GST Rate: 18%
GST Amount: ₹500 × 18% = ₹90
Final Invoice Value: ₹500 + ₹90 = ₹590
Make sure to:
Show HSN code and GST rate on the invoice
Maintain accurate records for audits
Documents Required for GST Compliance Here’s a checklist of documents required for smooth GST compliance for food products under Chapter 21:
GST registration certificate
Tax invoices with proper HSN codes
Purchase bills showing input tax
GSTR-1 and GSTR-3B returns
Stock registers and inventory management
Product lab reports (for supplements or nutritional items)
Final Thoughts Every food business operating as a manufacturer, wholesaler, or online seller requires fundamental knowledge about HSN codes and GST rates that appear under Chapter 21 for miscellaneous edible preparations. The correct classification of products leads to both a smooth GST return filing and prevents legal problems.
Classifying products correctly not only helps in smooth GST return filing but also avoids legal hassles.
Be sure to:
Stay updated with GST Council notifications
Consult a GST expert if your product has a complex composition
Use the right HSN codes on all invoices
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FAQs Q1. What is the GST rate on protein powders? A: 18%, under HSN code 2106.
Q2. Are health supplements exempt from GST? A: No, most supplements attract 18% GST unless specifically exempted for government schemes.
Q3. Is the sharbat concentrate taxable under GST? A: Yes, usually at 12% under HSN 2106.
Q4. What is the HSN code for instant coffee? A: HSN 2101.
Q5. How to classify a product containing multiple food ingredients? A: Consider the product’s primary purpose and composition , and refer to Chapter Notes and rulings for accurate classification.
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