Food and hospitality
A farsan shop sells ready-to-eat snacks by weight, which are goods. Namkeen, bhujia, mixture and similar preparations under 2106 90 are at 5% whether loose or packed, and khakhra, now treated with Indian breads, is nil-rated from 22 September 2025. Fresh items like dhokla and khandvi fall in food preparations under 2106 at 5%. The bill should show each item's weight and rate per kilogram, separate nil and 5% subtotals, the FSSAI number, and gift box details for festival orders.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Aloo bhujia, loose | 210690 | 1 KG | 340.00 | 340.00 | 5% |
| Navratan mixture, loose | 210690 | 0.5 KG | 360.00 | 180.00 | 5% |
| Methi khakhra, 200 g pack | 1905 | 3 PKT | 60.00 | 180.00 | 0% |
| Khaman dhokla, fresh | 2106 | 1 KG | 280.00 | 280.00 | 5% |
| Peanut chikki | 1704 | 0.5 KG | 300.00 | 150.00 | 5% |
| Taxable value | ₹1,130.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹47.50 | ||||
| Invoice total | ₹1,177.50 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: HSN Codes and GST Rates for Food Products · Composition Scheme Under GST: Is It Right for Your Business? · Barcode Billing for Retail: How to Set It Up Step by Step
Notification 9/2025-Integrated Tax (Rate) lists namkeens, bhujia, mixture, chabena and similar edible preparations in ready-for-consumption form under 2106 90 in the 5% schedule, whether or not pre-packaged and labelled. This settles an old source of confusion where packaged and branded namkeen carried a different rate from loose namkeen. From 22 September 2025, both are at 5%, so the shop can use one rate across loose trays and branded packs.
The GST Council exempted khakhra, chapati and roti, and the Council's FAQs explain that all Indian breads by whatever name called have been exempted. Khakhra is commonly classified under 1905 or 2106. A farsan shop should therefore move khakhra in its billing master to nil, and show it in a separate exempt section of the bill. Because khakhra is exempt, the input tax credit on ingredients used to make it, such as oil and flour, must be reversed in proportion.
Chikki and gajak are often sold in farsan shops. Sugar confectionery under 1704 sits in the 5% schedule, and the notification lists chikki and gajak among sugar-based items. Keep chikki separate from namkeen in the item master so that any future change to one does not alter the other.
A small farsan shop can opt for composition as a trader or manufacturer, issuing bills of supply without GST. However, composition is not available to a person who supplies goods inter-state, so a shop shipping farsan boxes to customers in other states through its website or courier must be in the normal scheme.
Farsan shops selling through e-commerce marketplaces have tax collected at source by the marketplace under section 52. The shop must be registered and should reconcile the TCS credit in its electronic cash ledger with its sales through each marketplace. Invoices for marketplace orders must still carry the correct HSN and rate.
A farsan shop that fries namkeen on site is a food manufacturer for FSSAI purposes and usually needs a state licence rather than basic registration once its turnover or production crosses the limits. FSSAI also requires used cooking oil to be monitored for total polar compounds above certain consumption levels. None of this changes the GST rate, but the licence number printed on the bill must match the category and premises actually licensed, and food safety officers do check it.
Namkeen, bhujia and mixture under 2106 90 are at 5% from 22 September 2025, whether loose or packed.
Khakhra is exempt from 22 September 2025 along with other Indian breads.
Ready food preparations such as dhokla are usually classified under 2106 as food preparations not elsewhere specified, at 5%.
Not for inter-state supplies. Composition dealers cannot make inter-state outward supplies of goods, and e-commerce sales through operators collecting TCS are also restricted.
Yes, where items carry different rates, list each with its HSN and rate so the tax is computed correctly.
If a consignment of taxable goods worth more than Rs 50,000 is moved by vehicle, an e-way bill is generally needed, subject to state relaxations for intra-state movement. Exempt khakhra does not need one on its own.
Sources: CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules · GST Council — FAQs on decisions of the 56th GST Council · GST Council — Press release, 56th GST Council recommendations (Sept 2025)
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