Over the counter, bread is nil-rated and biscuits, sweets, namkeen, chocolates and ice cream are 5%; aerated drinks are 40%. Food served for eating on the premises is a restaurant service, taxed differently. A bakery needs billing software that sells by kg and by piece and holds the rate per item. FundRaksha Book does this for counter sales; it has no table or KOT features.
GST on bakery and sweet shop items
| Item | HSN | GST over the counter |
|---|---|---|
| Bread | 1905 | Nil |
| Biscuits | 1905 | 5% |
| Sweets and mithai | 2106 | 5% |
| Namkeen | 2106 | 5% |
| Chocolate | 1806 | 5% |
| Ice cream | 2105 | 5% |
| Soft drinks | 2202 | 40% |
| Packaged drinking water | 2201 | 5% |
If you also buy in ghee, sugar and paneer for production, those purchase rates are 5%, 5% and nil respectively.
What a bakery or mithai counter needs
- Weight billing. 250 g of kaju katli is 0.25 kg; the software must take decimals.
- Per-piece items. Pastries, puffs and buns sold by the piece.
- Festival rush. Diwali and Raksha Bandhan bring queues and bulk boxes; scanning pre-packed boxes helps.
- Corporate gift orders on credit. Offices order hundreds of boxes and pay later.
- Eat-in separation. If you have tables, food served there is a restaurant service, not a sale of goods; it needs its own treatment.
How FundRaksha Book handles it
Set items in kg (sweets, namkeen), pcs (pastries, cakes) or packet (biscuits). Quantities take three decimals, so 0.25 kg bills correctly. For festival boxes you pack yourself, print barcode labels with name, price and date, and scan them at the counter.
Book is built around goods bought on a purchase bill. Sweets you make yourself still need a purchase or stock entry before they can be sold, which some bakeries find extra work. Book has no recipe or production costing, no table billing and no kitchen order tickets (KOT). If a large part of your business is eat-in, a restaurant billing system will fit better; see billing software for restaurants.
Corporate orders on credit go to the customer's ledger, and expenses such as gas, rent and wages feed the profit report.
FundRaksha Book is free for the first 300 invoices, with every feature switched on and no card needed. Sales and purchase invoices both count. After that, Pro is ₹999 a year for unlimited invoices, paid by UPI, card or net banking; the site says prices include applicable taxes as charged at checkout. See book.fundraksha.com.
What to check when choosing
- Does it bill by kg with decimals and by piece in the same bill?
- Can it print date labels for boxes you pack yourself?
- Do you need recipe costing or production entries? Book does not do these.
- Do you serve food at tables? Then you need restaurant billing for that part.
Worked example: a festival counter bill
| Item | Qty | Taxable value | GST |
|---|---|---|---|
| Kaju katli | 0.5 kg @ ₹1,000/kg | ₹500 | 5%: ₹25 |
| Namkeen mix | 1 kg @ ₹300 | ₹300 | 5%: ₹15 |
| Sandwich bread | 2 @ ₹50 | ₹100 | Nil |
| Cola 2 litre | 1 @ ₹100 | ₹100 | 40%: ₹40 |
Taxable total ₹1,000, GST ₹80, bill ₹1,080. One aerated drink adds half the tax on this bill, which is why each item needs its own rate in the software.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.