Saurabh, genuinely sensible to sort this before your prices harden.
Headline: the GST rate on cakes was revised to 5% as of September 2025. Whether you need to REGISTER at all is a separate question driven by turnover thresholds, and below those thresholds many small home operations aren't required to - which also means they can't claim input credit, and that's a real factor in how you price.
Why it matters now: if you later cross a threshold and have to register, a price built with no tax component gets squeezed exactly when your volume grows. Build your cost sheet so you can see pre-tax and post-tax positions separately and you save yourself a painful restructure.
Rates and thresholds change, and the goods vs service classification gets genuinely fiddly at the edges. Confirm your specific position with a practising CA rather than a forum - including us. What we will say: the bakers who get into trouble are almost never the ones who asked this question early.
