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Rate for chocolate Tea

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Devendra Kumar Modi

107 Points Joined June 2017

sir
peanut chikki Or dry fruit chikki is at 5%
Gst if coco powder added to it attract
18% Gst
My question is Tea is at 5% if coco powder is added to make chocolate Tea
now my query is what will be Gst of it

Replies (1)

Asha Kanta Sharma

Manager - Finance & Accounts

58312 Points Joined June 2010

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.