Understanding Goods and Services Tax on Pizza in India: Rates, Applicability, and HSN Codes
Recent reforms by the 56th GST Council, effective September 22, 2025, have significantly altered the Goods and Services Tax applicable to pizza in India. This article clarifies the updated GST rates and HSN codes for pizza bread, toppings, and the varying tax treatments for dine-in versus delivery services. It provides a detailed breakdown to help both consumers and businesses understand the new tax landscape for pizza consumption.
Goods and Services Tax on Pizza in India: Rates, Applicability, and HSN Codes
Have you considered the Goods and Services Tax (GST) applied to your pizza? Following the 56th GST Council meeting, effective from September 22, 2025, the tax structure for pizza has undergone notable changes, impacting everything from the base to the toppings and delivery fees.
Key Insights
- Pizza base is now exempt from GST (0% rate).
- Toppings, cheese, and sauces for pizza are subject to a reduced 5% GST.
- For dine-in, pizzas served at non-specified premises incur 5% GST, while those at specified premises attract 18% GST.
- Charges for home delivery are taxed at 18% GST.
Understanding Pizza Taxation Scope
Previously, the taxation of pizza largely varied depending on its preparation, sale, or supply method. Initially, pizza bread was subject to 5% GST, cheese and other toppings were taxed at 18%, and rates for dine-in and delivery differed by venue and classification.
The current regulations offer more clarity. Pizza bread is entirely exempt (zero-rated), toppings and sauces are now taxed at 5%, and dine-in rates remain either 5% or 18% based on the dining location.
GST Rates and HSN Codes for Pizza (Following 56th Council Meeting)
The table below outlines the updated GST rates and Harmonized System of Nomenclature (HSN) or Service Accounting Code (SAC) for various pizza components and services:
| Description | HSN/SAC | GST Rate |
|---|---|---|
| Pizza Bread | 1905 | Nil |
| Pizza Toppings (including cheese & sauces) | 2106 90 99 | 5% |
| Pizza served at Restaurant – Non-specified premises | 9963 | 5% (No ITC) |
| Pizza served at Restaurant – Specified premises | 9963 | 18% (With ITC) |
| Delivery Charges (if any) | 9968 | 18% |
Note: "Specified premises" refers to hotels where the room tariff exceeded Rs. 7,500 per night in the preceding financial year.
Advance Rulings on Pizza GST Rates
A significant ruling by the Haryana Appellate Authority for Advance Ruling (AAAR) determined that pizza toppings made with vegetable fat do not qualify as cheese. Instead, these items were categorized as 'food preparations not elsewhere specified' (HSN 21069099), previously subject to an 18% GST. However, subsequent to September 2025, the Council's updated decision has lowered the GST rate for these products to 5%, offering considerable relief to restaurants and their suppliers.
GST Variations for Dine-In and Delivery
The application of GST differs based on whether a pizza is consumed on-site or delivered:
- Dine-in:
- Non-specified restaurants are subject to 5% GST, with no input tax credit (ITC) allowed.
- Specified premises, such as luxury hotels or restaurants, incur 18% GST, where input tax credit is permissible.
- Home Delivery:
- The GST on the pizza itself aligns with the restaurant's rate (either 5% or 18%).
- An additional 18% GST is separately applied to the delivery charges.
Essentially, while the pizza's flavor remains constant, the applicable tax varies depending on the consumption method and location.
Conclusion
The recent reforms by the GST Council have simplified the taxation of pizza, making it clearer for both businesses and consumers. A comprehensive understanding of the tax rates for dine-in, takeaway, and delivery options is crucial for restaurants to ensure compliance and for customers to stay informed. Ultimately, navigating GST regulations, similar to savoring a pizza, is most effectively achieved by examining each component individually.