BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Agarbatti, or incense sticks, hold a special place in Indian homes, temples, and ceremonies. They’re not just religious items but also used for meditation, aromatherapy, and gifting. But how are these fragrant products taxed under GST (Goods and Services Tax)? Let’s explore the agarbatti gst rate, how it has changed, and what it means for sellers and buyers.
Under GST regime, agarbattis are considered household consumption products. Originally, they were kept under a lower tax bracket to support small-scale cottage industries.
| Product | HSN Code | GST Rate |
|---|---|---|
| Agarbatti (Incense sticks) | 3307 | 5% |
| Dhoop sticks/cones (non-branded) | 3307 | 5% |
| Branded dhoop sticks/cones | 3307 | 12% |
| Scented candles, aroma oils | 3307 / 3406 | 12%–18% |
Dhoop sticks and cones are similar to agarbattis but often come without wooden sticks. They’re thicker and burned for stronger aroma in rituals.
Most raw materials used in manufacturing agarbatti also attract GST:
| Raw Material | GST Rate |
|---|---|
| Bamboo sticks | 12% |
| Fragrance oils | 18% |
| Resin (Guggul, Loban) | 5%–12% |
| Binding powders | 5% |
Manufacturers can claim Input Tax Credit on these inputs when they sell the final taxable product.
GST rate changes depending on how the product is packaged and presented:
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Understanding the agarbatti gst rate helps both manufacturers and customers know how these aromatic products are taxed. While the government has kept most incense items at a low 5% rate, value-added and branded variants fall into higher brackets.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.