From 22 September 2025, GST on biscuits is a uniform 5% under the GST 2.0 reform. This covers all biscuits under HSN 1905 — glucose biscuits (Parle-G), Marie, cream biscuits, sandwich biscuits, cookies, digestives, crackers and premium packs. The earlier structure — 18% on standard/premium biscuits and 5% only below ₹100/kg — no longer exists; there is now a single 5% rate regardless of brand or price.
GST Rate on Biscuits — Decision Table
Every common biscuit type and brand now sits in the same 5% slab. The old per-kilogram price test has been withdrawn — no more calculating MRP ÷ weight to pick a rate.
| Biscuit Type / Brand | HSN | GST Rate | ITC (mfr.) |
|---|---|---|---|
| Glucose biscuits (Parle-G, Glucose-D) | 1905 31 | 5% | Yes |
| Marie biscuits | 1905 31 | 5% | Yes |
| Cream biscuits (Oreo, Hide & Seek) | 1905 31 | 5% | Yes |
| Butter / cookies (Good Day, Dark Fantasy) | 1905 31 | 5% | Yes |
| Digestive biscuits (McVitie's) | 1905 31 | 5% | Yes |
| Crackers / salted (Monaco, Krackjack) | 1905 31 | 5% | Yes |
| Wafers & waffle biscuits | 1905 32 | 5% | Yes |
| Chocolate-coated biscuits | 1905 31 | 5% | Yes |
| Rusk / toast | 1905 40 | 5% | Yes |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025. Confirm on the official GST portal before invoicing.
Old Rate vs New Rate — GST 2.0
Before 22 September 2025, biscuits sat in two buckets: 5% only for economy biscuits priced below ₹100/kg, and 18% for everything else. GST 2.0 collapsed both into a single 5% slab.
From 22 Sep 2025 — every biscuit
- One rate for all HSN 1905 biscuits
- Glucose, Marie, cream, cookies, crackers
- No ₹100/kg price test
- No brand or premium distinction
- Simpler classification for manufacturers
Before 22 Sep 2025 — most biscuits
- 18% on standard & premium biscuits
- 5% only below ₹100/kg (Parle-G etc.)
- MRP ÷ weight test required per pack
- Frequent classification disputes
- Now withdrawn
Apply 5% on supplies made on or after 22 September 2025. For invoices, stock and transitional supplies straddling the change, the time-of-supply rules under the CGST Act decide the applicable rate — check the invoice/payment dates before billing.
Manufacturer or distributor repricing biscuit stock after GST 2.0?
Get My GST Rate Reviewed →How GST Adds Up on a Biscuit Pack
5% ₹5 Parle-G pack
5% ₹30 cookie pack
Both packs now carry the same 5% rate — a cream-biscuit or cookie pack that earlier attracted 18% has become cheaper, or leaves more margin, after GST 2.0. Use our GST calculator to split any MRP into value and tax.
ITC for Biscuit Businesses
Because biscuits are taxed at 5% (not nil/exempt), the supply is taxable and the input tax credit chain stays open for registered manufacturers and traders — GST paid on inputs is creditable against the 5% output tax.
| Input / Cost | GST on Input | ITC? |
|---|---|---|
| Maida / atta, sugar, palm oil | Various | Yes |
| Packaging (wrappers, cartons) | 18% / 12% | Yes |
| Plant & machinery (capital goods) | 18% | Yes |
| Freight / advertising services | 5% / 18% | Yes |
| Composition-scheme dealer | — | No |
Claim ITC only against invoices matched in your GSTR-2B. Composition dealers cannot claim ITC.
A 5% output rate with fully creditable inputs (packaging and machinery at 18%) can leave biscuit makers in an inverted-duty position — where input GST exceeds output GST. That accumulated credit may be claimable as a refund; get it reviewed rather than letting it sit idle.
Biscuit Manufacturers & Sellers
The uniform 5% rate simplifies life for makers like Parle, Britannia and ITC Sunfeast and for kirana and distributor networks — one rate, one HSN family, no per-pack price test.
Biscuit GST Compliance Checklist
Registration for a goods supplier is mandatory once aggregate turnover crosses ₹40 lakh (₹20 lakh in special-category states). The core compliance picture for a biscuit business:
- GST registration (GSTIN)
- Correct HSN 1905 classification
- Tax invoice with 5% rate
- HSN summary in GSTR-1
- GSTR-1 (outward supplies)
- GSTR-3B (monthly / QRMP)
- ITC reconciliation via GSTR-2B
- Inverted-duty refund (if applicable)
- E-invoicing (if turnover > ₹5cr)
- E-way bill for despatches
- GSTR-9 annual return
- Books & records upkeep
Running a bakery, biscuit brand or distribution business?
Talk to a GST Expert →Frequently Asked Questions
Related TaxClue services
Biscuits, Bakery or FMCG — GST Sorted at 5%
From correct HSN 1905 classification and 5% invoicing to ITC and inverted-duty refunds, TaxClue's CA-led team handles your GST registration and monthly compliance — 100% online, across India.