Rate for chocolate Tea

Hi Devendra! Good question about GST on chocolate tea with added cocoa powder.

Here's the general idea:

• Plain tea (unflavored) is taxed at 5% GST.

• Cocoa powder is generally taxed at 18% GST.

• When you add cocoa powder to tea to make chocolate-flavored tea, this becomes a mixed product.

How GST applies on mixed products:
Usually, when two goods are mixed, the GST rate of the principal ingredient or the highest rate component applies.

In this case:

• Tea is the main product.

• Cocoa powder is an additive/flavoring.

However, as per GST practice, flavored tea or tea with added ingredients like cocoa generally attracts the higher GST rate of 18%, since cocoa powder is taxed at 18%.

So, chocolate tea with cocoa powder added will attract 18% GST.