February 25, 2023
Prudhvi Raj


Cocoa powder is a popular ingredient that's used in a variety of food and beverage products. As a small or medium business owner, it's important to understand the GST rates and HSN code for cocoa powder so that you can properly account for it in your books and avoid any penalties or fines.

What is GST?

GST stands for Goods and Services Tax, which is a unified tax system that was implemented in India in 2017. The GST replaced multiple indirect taxes that were previously levied by the central and state governments, making it easier for businesses to comply with tax regulations.

What is HSN Code?

The Harmonized System of Nomenclature (HSN) code is a six-digit code that's used to classify goods in India. The HSN code is an internationally accepted system that's used to classify goods for customs and trade purposes.

What is Cocoa Powder?

Cocoa powder is made from cocoa beans that have been roasted, ground, and pressed to remove the fat (cocoa butter). The resulting powder is rich in antioxidants and has a deep, chocolatey flavor. Cocoa powder is used in a variety of products, including chocolate bars, cakes, cookies, and beverages.

GST Rates for Cocoa Powder

The GST rates for cocoa powder depend on the type of cocoa powder and its intended use. Here's a breakdown of the GST rates for cocoa powder:

1. 12% GST for raw cocoa powder

2. 18% GST for cocoa powder that's been sweetened with sugar or other sweetening agents

3. 28% GST for cocoa powder that's been mixed with other ingredients, such as milk powder, to make a beverage mix

HSN Code for Cocoa Powder

The HSN code for cocoa powder is 1805. This code is used to classify cocoa powder under the broad category of cocoa and cocoa preparations.

How to Calculate GST for Cocoa Powder

To calculate the GST for cocoa powder, you'll need to know the GST rate and the price of the cocoa powder. Here's an example:

Suppose you purchase 1 kilogram of raw cocoa powder for Rs. 200. The GST rate for raw cocoa powder is 12%. To calculate the GST, you would do the following:

1. Calculate the GST amount: Rs. 200 x 12% = Rs. 24

2. Add the GST amount to the price of the cocoa powder: Rs. 200 + Rs. 24 = Rs. 224

So the total price you would pay for 1 kilogram of raw cocoa powder, including GST, would be Rs. 224.

In Conclusion

Understanding the GST rates and HSN code for cocoa powder is essential for any small or medium business owner who deals with this ingredient. By properly accounting for cocoa powder in your books, you can avoid any fines or penalties and keep your business running smoothly.


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