--- title: "New GST on Jaggery 2026: 0% Rate on Jaggery, Gur & Jaggery Powder" description: "New GST rate on jaggery in 2026 is 0% on loose jaggery, gur and jaggery powder products. Get GST-ready with Busy and apply the correct rate on every invoice." canonical: "https://busy.in/gst-rates/jaggery/" author: "Hitesh Aggarwal" published: "2025-07-21T08:14:49.000Z" category: "GST Rates" --- - 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. # 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. ## 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 | Live Demo Available Today ## Raise Supplier Purchase Orders for Jaggery Before Demand Peaks Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## 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. ## About the author **Hitesh Aggarwal** 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. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)