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August 23, 2025

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Basics of GST

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

Get to know about the ‍General Store Items List to never miss out on anything!

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) on raw materials, packaging, and other business-related expenses, provided:

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, and ITC on that cess component must be handled as per the provisions in the GST Act.

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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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