What is the GST on jaggery in India?

Unbranded and loose jaggery is exempt (0% GST), while packaged and branded jaggery attracts 5% GST .

Is there GST on jaggery powder?

The jaggery powder GST rate is 0% for loose, unbranded powder and 5% if it's packaged and labelled.

What HSN code is used for jaggery?

1701 is the HSN code for both solid and powdered jaggery.

Can ITC be claimed on jaggery purchases?

ITC is allowed only for taxable (5%) jaggery, not for exempt (0%) sales.

Are all types of gur treated the same under GST?

Yes, whether it's cane jaggery or palm jaggery, the GST on jaggery depends on branding and packaging.

GST on Jaggery (Gur): Clarifying Rates & Exemptions

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.

Book A Demo

Phone Number*

Country code

Email ID*

City*

GST Rates

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.

Hitesh Aggarwal

Chartered Accountant

MRN No.: 529770

City: Delhi

As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.

Frequently Asked Questions

What is the GST on jaggery in India?

Unbranded and loose jaggery is exempt (0% GST), while packaged and branded jaggery attracts 5% GST.
Is there GST on jaggery powder?

The jaggery powder GST rate is 0% for loose, unbranded powder and 5% if it's packaged and labelled.
What HSN code is used for jaggery?

1701 is the HSN code for both solid and powdered jaggery.
Can ITC be claimed on jaggery purchases?

ITC is allowed only for taxable (5%) jaggery, not for exempt (0%) sales.
Are all types of gur treated the same under GST?

Yes, whether it's cane jaggery or palm jaggery, the GST on jaggery depends on branding and packaging.

View all FAQs