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- Updated on : September 19, 2025
HSN Chapter 18: Cocoa & Cocoa Preparations Classification & GST India
HSN Code & GST Rate for Cocoa & Cocoa Products - Chapter 18
HSN Chapter 18 experienced a transformative change in the September 2025 GST reforms, with ALL cocoa and chocolate products moving to a revolutionary uniform 5% GST rate. This historic change eliminates the previous multi-tier structure, significantly benefiting chocolate manufacturers, confectionery companies, and consumers by creating complete uniformity from raw cocoa beans to finished premium chocolates.
Key Classification Factors for Cocoa & Chocolate GST Rates
- Uniform Rate Structure: Single 5% GST across ALL Chapter 18 products
- No Processing Distinction: Same rate for raw cocoa and finished chocolates
- Complete Simplification: No distinction between industrial and consumer products
- Industry-Wide Benefit: Major cost reduction and compliance simplification
Complete HSN Code Table: Cocoa & Cocoa Preparations (Chapter 18)
| GST Rate | Product Description | HSN Code | Key Import/Export HSN Codes |
|---|---|---|---|
| 5% | Cocoa beans whole or broken, raw or roasted | 1801 | 18010000 |
| 5% | Cocoa shells, husks, skins and other cocoa waste | 1802 | 18020000 |
| 5% | Cocoa paste whether or not defatted | 1803 | 18031000, 18032000 |
| 5% | Cocoa butter, fat and oil | 1804 | 18040000 |
| 5% | Cocoa powder, not containing added sugar or sweetening matter | 1805 | 18050000 |
| 5% | Chocolates and other food preparations containing cocoa | 1806 | 18061000, 18062000, 18063100, 18063200, 18069010, 18069020 |
🍫 Revolutionary September 2025 GST Transformation for Chocolate Industry:
- Historic Simplification: ALL Chapter 18 products moved from varied rates (5% to 18%) to uniform 5% GST
- Massive Industry Relief: Cocoa butter, powder, and chocolates previously at 18% now at 5% - huge cost savings
- Consumer Benefits: Chocolate and cocoa products now significantly more affordable across all price segments
- Manufacturing Boost: Chocolate manufacturers and confectionery companies benefit from simplified compliance and lower input costs
- Export Competitiveness: Uniform low rates boost India's position in global chocolate and cocoa markets
- Value Chain Uniformity: Same rate from raw cocoa beans to premium finished chocolates
- Small Business Support: Local chocolate makers and artisan confectioners gain significant cost advantages
- Complete Equality: No distinction between industrial cocoa products and consumer chocolates
- GST 2.0 Success: Chapter 18 exemplifies the simplified GST structure with maximum industry and consumer benefit
🍫 Universal 5% GST Rate Examples:
🌰 Raw Materials (All at 5%):
- Cocoa Beans (HSN 1801): 5% GST - raw and roasted cocoa beans for processing
- Cocoa Shells & Waste (HSN 1802): 5% GST - by-products used in animal feed and fertilizer
- Cocoa Paste (HSN 1803): 5% GST - liquified cocoa for chocolate manufacturing
🧈 Intermediate Products (All at 5%):
- Cocoa Butter (HSN 1804): 5% GST - major reduction from 18% for cosmetic and food industries
- Cocoa Powder (HSN 1805): 5% GST - unsweetened powder for baking and beverages
🍬 Finished Products (All at 5%):
- Milk Chocolates (HSN 1806): 5% GST - popular consumer chocolate varieties
- Dark Chocolates (HSN 1806): 5% GST - premium and health-focused chocolates
- Chocolate Confectionery (HSN 1806): 5% GST - filled chocolates, pralines, chocolate bars
- Chocolate Preparations (HSN 1806): 5% GST - chocolate spreads, syrups, and compounds
🏭 Industry Applications:
- Chocolate Manufacturing: Major input cost reduction across entire production chain
- Confectionery Industry: Lower costs for chocolate-based sweets and candies
- Bakery & Patisserie: More affordable cocoa ingredients for baking and desserts
- Cosmetic Industry: Significant savings on cocoa butter for skincare products
Frequently Asked Questions (FAQs)
What are the GST rates for all cocoa and chocolate products in India after September 2025?
All cocoa and chocolate products under HSN Chapter 18 now attract a uniform 5% GST rate (2.5% CGST + 2.5% SGST) as per the September 2025 GST reforms. This includes raw cocoa beans, cocoa powder, cocoa butter, and all chocolate preparations - creating complete uniformity across the chapter.
Which HSN codes are covered under the new uniform 5% GST rate for Chapter 18?
All HSN codes from 1801 to 1806 now attract 5% GST: cocoa beans (1801), cocoa shells and waste (1802), cocoa paste (1803), cocoa butter and oil (1804), cocoa powder (1805), and chocolates and cocoa preparations (1806).
What was the major change in Chapter 18 GST rates in September 2025?
The September 2025 reforms brought revolutionary changes to Chapter 18 - ALL products moved to a uniform 5% GST rate. Previously, rates varied from 5% to 18% across different cocoa products. This massive simplification benefits chocolate manufacturers, confectionery companies, and consumers.
How does the uniform 5% rate affect raw cocoa vs finished chocolate products?
The uniform 5% GST rate applies equally to all cocoa products - from raw cocoa beans to finished chocolates and premium confectionery. This eliminates previous rate variations and creates a single, simplified tax structure for the entire cocoa and chocolate industry.
Are there any exceptions to the 5% GST rate in Chapter 18?
No, there are no exceptions. The September 2025 GST notification (Schedule I) specifically lists all HSN codes from 1801 to 1806 at the uniform 2.5% CGST rate (5% total GST). This creates complete uniformity across raw cocoa materials, intermediate products, and finished chocolate preparations.
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Disclaimer
The GST Rate & HSN codes and rates have been arranged as per the best of authors understanding and are subject to periodic updates as per the law for the time being in force. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions herein is not ruled out. DisyTax will not be held responsible for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document.