Saurabh, a genuinely sensible thing to sort out before your prices harden.
The headline point: the GST rate on cakes was revised to 5% as of September 2025. Whether you need to be registered at all is a separate question driven by turnover thresholds, and below those thresholds many small home operations are not required to register — which also means they cannot claim input credit, and that is a real factor in how you price.
The reason it matters for pricing is that if you later cross a threshold and have to register, a price built with no tax component in it gets squeezed exactly when your volume grows. Building your cost sheet so you can see the pre-tax and post-tax positions separately saves a painful restructure later.
Rates and thresholds change, and the interaction between goods and service classification is genuinely fiddly at the edges. Confirm your specific position with a practising CA rather than a forum — including us. What we would say is that the bakers who get into trouble are almost never the ones who asked this question early.
