GST for Sweet Shops in Kolkata: Mishti Rates, Shop vs Restaurant, Composition Scheme and Online Orders
Sweets such as rosogolla, sandesh, mishti doi and other mithai are taxed at 5% GST when a sweet shop sells them over the counter as goods. If the shop also serves food to customers who sit and eat, those sales become a restaurant service, also at 5% but without input tax credit. A sweet shop with turnover up to ₹1.5 crore can opt for the composition scheme and pay a flat rate instead. Orders through Swiggy and Zomato are taxed differently because the platform pays the GST. This guide explains which rule applies to which sale.
GST on sweet shop sales
| Sale | GST |
|---|---|
| Sweets and mithai sold over the counter or packed for takeaway | 5% |
| Namkeen, bhujia and savoury snacks | 5% after the September 2025 changes |
| Chocolates, sugar-boiled confectionery | 5% after the September 2025 changes |
| Food served to customers who eat at the shop | 5% restaurant service, without input tax credit |
| Orders through Swiggy or Zomato | GST paid by the platform under section 9(5) |
| Catering for weddings and events | 5% outdoor catering, without input tax credit |
Shop or restaurant?
Many Kolkata sweet shops have a few tables where customers eat kachori, singara and sweets. Sales eaten on the premises are a restaurant service, while sweets packed and taken away are a sale of goods. Both are at 5%, but credit rules differ: input tax credit is allowed on goods sales and not on restaurant service. Keep separate billing heads in your POS so you can split turnover and credit correctly.
Composition scheme
| Point | Rule |
|---|---|
| Turnover limit | Up to ₹1.5 crore in the previous year |
| Rate for a manufacturer of sweets | 1% of turnover (0.5% CGST + 0.5% SGST) |
| Rate for a restaurant | 5% |
| Input tax credit | Not allowed |
| Returns | CMP-08 quarterly, GSTR-4 annually |
| Limits | No interstate sales; cannot collect GST from customers |
If your shop mainly sells sweets it makes, the 1% manufacturer rate can be attractive. If it is mainly a sit-down restaurant, the composition rate is 5%. Compare with normal registration before choosing. See our guide on the GST composition scheme.
Swiggy and Zomato orders
For restaurant orders through food delivery platforms, the platform collects and pays the 5% GST, so the shop does not charge GST on those orders again. Report them correctly in GSTR-1 and reconcile the platform’s statements with your sales every month.
Other registrations
- FSSAI State licence for most sweet shops, because they manufacture and usually cross ₹12 lakh turnover. See our FSSAI licence guide.
- KMC trade licence for each outlet.
- Trademark for your shop name and sweets brand, especially if you plan branches.
FAQs
What is the GST rate on rosogolla and sandesh?
5% when sold as goods over the counter.
Does a sweet shop with tables charge restaurant GST?
For food eaten at the shop, yes, 5% as a restaurant service without input tax credit.
Can a sweet shop opt for composition?
Yes, with turnover up to ₹1.5 crore. A manufacturer of sweets pays 1%; a restaurant pays 5%.
Who pays GST on Swiggy and Zomato orders?
The platform pays it under section 9(5).
TAXAJ handles GST, FSSAI and accounts for sweet shops and food businesses across Kolkata. See our GST return filing service or talk to our Kolkata team.
Last updated 11 November 2026. Sources: Notification 1/2017 and 11/2017-Central Tax (Rate) as amended, including the September 2025 rate changes; CGST Act, 2017, sections 9(5) and 10; CGST Rules, rule 7. General information only.
