GST on Jaggery (Gur): Clarifying Rates & Exemptions
Quick Summary
- Jaggery, or Gur, is taxed differently based on its form and packaging, with loose or unbranded jaggery being GST-exempt.
- Packaged and labelled jaggery, whether solid or powdered, is subject to a 5% GST rate.
- The HSN Code for jaggery is 1701, which includes cane or beet sugar and pure sucrose in solid form.
- Input Tax Credit (ITC) can't be claimed on unbranded jaggery but can be claimed on packaged jaggery if proper GST invoices and codes are maintained.
- Small producers benefit from GST exemptions on loose jaggery, but must register for GST and comply with rules if they package or brand their products.
Jaggery, known as Gur in many parts of India, is a natural sweetener made from sugarcane or palm sap. It’s widely used in rural households and traditional recipes. While it’s considered a staple in many kitchens, the GST on jaggery can sometimes be confusing due to varying tax rules for its different forms—solid, powdered, packaged, or loose. This blog clears up the applicable GST rates, exemptions, and classification based on how jaggery is sold and used.
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New GST Rate on Jaggery (Gur) & Jaggery Powder in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for jaggery products (no compensation cess).
| Type of Jaggery | New GST Rate | Condition |
|---|---|---|
| Loose/Unbranded Jaggery (Solid) | 0% | No packaging, no branding |
| Pre-packaged/Labelled Jaggery | 5% | Packaged and labelled |
| Jaggery Powder (Loose) | 0% | No branding, not pre-packaged |
| Jaggery Powder (Packaged) | 5% | Packaged and labelled |
Is GST Applicable on Jaggery?
Yes, GST is applicable on jaggery, but not in all cases. The tax rate depends on:
- Form: Solid vs Powder
- Packaging: Branded/Pre-packaged vs Loose
- Labeling: Whether it has a registered brand name
The good news is that most traditional or loose jaggery is exempt from GST.
Old GST Rate on Jaggery (Gur) and Jaggery Powder
(Old GST Rates – Applicable Until 21st September)
| Type of Jaggery | Old GST Rate | Condition |
|---|---|---|
| Loose/Unbranded Jaggery (Solid) | 0% | No packaging, no branding |
| Pre-packaged/Labelled Jaggery | 5% | Packaged and labelled |
| Jaggery Powder (Loose) | 0% | No branding, not pre-packaged |
| Jaggery Powder (Packaged) | 5% | Packaged and labelled |
HSN Code for Jaggery
Jaggery is classified under HSN Code 1701, which covers cane or beet sugar and chemically pure sucrose in solid form.
| Product Description | HSN Code | GST Rate |
|---|---|---|
| Gur / Jaggery (Solid) | 1701 | 0% or 5% |
| Jaggery Powder | 1701 | 0% or 5% |
Input Tax Credit (ITC) on Jaggery
Since unbranded jaggery is exempt from GST, ITC cannot be claimed when used or sold in that form. However, if a business deals in packaged and taxable jaggery (5%), it can:
- Claim ITC on inputs such as packaging, transportation, and processing
- Maintain GST-compliant invoices and HSN codes for audit purposes
Impact on Farmers and Small-Scale Producers
Small jaggery producers who sell loose and unbranded jaggery benefit from the GST exemption. This reduces the compliance burden for rural and cottage industries. However, if they start branding or packaging their products for retail chains or supermarkets, they must:
- Register under GST (if turnover exceeds ₹40 lakh)
- Charge 5% GST on sales
- File regular GST returns
Conclusion
The GST on jaggery depends mainly on whether it’s branded and packaged. Loose or unbranded jaggery is GST-exempt, supporting traditional and small-scale producers. On the other hand, packaged jaggery is taxed at 5%, and businesses dealing with it must follow standard GST compliance rules. By knowing the correct rate and HSN code, both buyers and sellers can avoid confusion and ensure smooth transactions.
