Agarbatti New GST Rate: Tax on Incense Sticks and Fragrance Products
- The agarbatti GST rate is 5% under HSN 3307 41 00 and remained unchanged on 22 September 2025.
- GST on agarbatti, lobhan, dhoop batti, dhoop and sambraani is generally 5%.
- Other odoriferous preparations that operate by burning, excluding agarbatti and specified similar products, attract 18% GST from 22 September 2025, increased from 12%.
- Candles and similar products under HSN 3406 generally attract 5% GST from 22 September 2025, reduced from 12%.
- Essential oils and fragrance preparations may attract different GST rates depending on their HSN classification; they should not be grouped under one blanket rate.
- GST registration depends on the nature of supplies, turnover threshold and applicable registration provisions.
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.
GST Compliance Easier When Rates Are Correct
Join our guided walkthrough to see how BUSY can transform your business operations.
New GST Rate on Agarbatti & Inputs in India
The agarbatti HSN code and GST rate are generally HSN 3307 41 00 and 5% GST. The agarbatti rate did not change on 22 September 2025, although some related fragrance products were revised.
| Product | HSN Code | GST Rate | Rate Before 22 Sep 2025 |
|---|---|---|---|
| Agarbatti (incense sticks) | 3307 41 00 | 5% | 5% |
| Dhoop batti / dhoop / sambraani | 3307 41 00 | 5% | 5% |
| Other odoriferous preparations that operate by burning, excluding specified agarbatti/dhoop products | 3307 41 00 | 18% | 12% |
| Candles and similar products | 3406 | 5% | 12% |
Product
HSN Code
GST Rate
Rate Before 22 Sep 2025
Product
HSN Code
GST Rate
Rate Before 22 Sep 2025
Product
HSN Code
GST Rate
Rate Before 22 Sep 2025
Product
HSN Code
GST Rate
Rate Before 22 Sep 2025
The 2025 GST changes specifically moved other burning odoriferous preparations from 12% to 18% and candles from 12% to 5%. Agarbatti and specified dhoop products remained at 5%.
Raw Materials Used in Agarbatti
| Raw Material | GST Rate | Rate Before 22 Sep 2025 |
|---|---|---|
| Bamboo sticks | 5% | 5% |
| Fragrance/perfumery preparations, where classified at 18% | 18% | 18% |
| Lobhan sold under the specified agarbatti/incense classification | 5% | 5% |
| Binding materials such as joss/wood powder | Generally 5%, subject to HSN classification | 5% or 12%, depending on HSN classification |
Raw Material
GST Rate
Rate Before 22 Sep 2025
Raw Material
GST Rate
Rate Before 22 Sep 2025
Raw Material
GST Rate
Rate Before 22 Sep 2025
Raw Material
GST Rate
Rate Before 22 Sep 2025
Old 12% Still In Items? Replace With Updated Rates
* No credit card required
GST on Dhoop Agarbatti and Cones
Dhoop sticks and cones are similar to agarbattis but are generally thicker and may be sold without wooden sticks.
- Dhoop batti / dhoop / sambraani under HSN 3307 41 00 generally attract 5% GST.
- The 5% rate applies irrespective of whether the product is branded or unbranded, subject to correct HSN classification.
GST Impact on Small Agarbatti Units
- GST on raw materials depends on the applicable HSN classification and rate of each input.
- Small units engaged exclusively in supplying goods may have a GST registration threshold of up to ₹40 lakh, subject to applicable state limits and registration provisions.
- Businesses crossing the applicable registration threshold must register and charge GST on taxable supplies.
Packaging and Branding: Does It Change the GST Rate?
Packaging or branding alone does not generally change the GST rate for agarbatti and dhoop products classified under HSN 3307 41 00.
- Loose agarbattis: 5%
- Branded agarbattis in retail packs: 5%
- Dhoop batti / dhoop / sambraani under HSN 3307 41 00: 5%
Products falling under a different HSN classification may attract a different GST rate.
Explore a Free Demo – Best Inventory Management Software For Small Business
Conclusion
Understanding the agarbatti GST rate helps manufacturers and customers apply the correct tax. Agarbatti, dhoop batti, dhoop and sambraani under HSN 3307 41 00 generally attract 5% GST, while other fragrance products may have different rates depending on their HSN classification.
