Food and hospitality
A tea stall serving chai and snacks is an eating joint, so a registered stall charges 5% without input tax credit. Most stalls are below the registration threshold and charge no GST at all. Where the stall supplies offices on a monthly account, it needs a proper bill listing cups per day, the month, and the office's GSTIN if registered. Loose tea leaves sold by weight are goods under HSN 0902 at 5%, billed separately from served tea.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Masala chai (office supply, October) | 996331 | 600 CUP | 12.00 | 7,200.00 | 5% |
| Bun maska served with tea | 996331 | 80 NOS | 25.00 | 2,000.00 | 5% |
| Filter coffee (office supply, October) | 996331 | 150 CUP | 15.00 | 2,250.00 | 5% |
| Assam CTC tea leaves, loose | 0902 | 2 KG | 420.00 | 840.00 | 5% |
| Taxable value | ₹12,290.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹614.50 | ||||
| Invoice total | ₹12,904.50 | ||||
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: Billing for Service Businesses: Models, GST and Best Practice · What Is an HSN Code and Why Does Every GST Invoice Need One? · Tax Invoice vs Bill of Supply: Which One Should You Issue?
A cup of tea poured and handed over at a stall, or carried in a flask to an office, is a drink supplied by an eating joint for consumption on or away from its premises. Under the restaurant entry of Notification 11/2017-Central Tax (Rate), that is taxed at 5% without credit once the stall is registered. There is no separate exemption for tea stalls, although many fall below the registration threshold and so charge nothing.
Tea under heading 0902, other than unprocessed green leaves, is in the 5% schedule of Notification 9/2025-Integrated Tax (Rate). A stall that sells its own blend in packets or by weight is selling goods and must bill them under 0902. Instant tea premixes and extracts under 2101 20 are also in the 5% schedule. Keep these sales separate from tea served, because the credit position differs.
When a stall supplies an office daily and bills at month end, the bill date is the time of supply for the month's service, provided the bill is issued within the time allowed for services. A monthly bill with daily cup counts is acceptable, as long as it carries a consecutive number and the required details. If the office pays in advance, issue a receipt voucher and pay tax when the advance arrives.
A tea stall supplies services, so the registration threshold is generally Rs 20 lakh of aggregate turnover. Some stalls register voluntarily to win corporate accounts that insist on GST bills. Once registered, every cup sold to walk-in customers becomes taxable too, so weigh that before registering.
A stall run on a contract inside an office, hospital or factory canteen space may fall under the canteen explanation of the restaurant entry, which covers supplies at a canteen or cafeteria of an institution on a contractual basis, provided the supply is not event based or occasional. The rate is still 5% without credit. Keep a copy of the contract, which shows the arrangement and the period, and bill the institution or the employees as the contract specifies.
Only if it is registered. Most small stalls are below the Rs 20 lakh service threshold and should not show GST.
A registered stall charges 5% without input tax credit on tea and snacks served.
Tea is classified under heading 0902, taxed at 5% from 22 September 2025.
Credit on food and beverages is generally blocked under section 17(5), so offices usually cannot claim it, but they may still need a proper bill.
It is good practice to attach or print day-wise counts. The GST invoice needs a total quantity and value, but day-wise counts help the office verify and reduce payment delays.
Registered businesses must show HSN or SAC codes as prescribed by turnover, and small bills for walk-in customers may be issued as consolidated daily invoices in some cases. Printing SAC 996331 on every bill is simple and avoids any question.
Sources: GST Council — Notification 11/2017-CT(Rate), consolidated (services rates, heading 9963) · CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules · GST Council — Press release, 56th GST Council recommendations (Sept 2025)
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