GST on Paints: What You Should Know
If you’re building a new home, renovating, or running a paint business, it’s important to understand how the Goods and Services Tax (GST) affects the cost of paints. This blog breaks down everything you need to know about gst on paints in India—from rates to billing and impact on pricing.
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GST Rate on Paints
Paints are classified under HSN Code 3208 and are taxed at a 28% GST rate, which is one of the highest slabs under GST. This rate applies to most types of paints, including:
- Water-based paints
- Oil-based paints
- Emulsions
- Distempers
- Varnishes
- Enamels
- Primers
Whether you’re buying paint for home use or stocking up as a dealer, this paint GST rate is uniform across India.
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HSN Code and GST Classification
| Product | HSN Code | GST Rate |
|---|---|---|
| Paints and varnishes (based on synthetic polymers or acrylics) | 3208 | 28% |
| Water-based pigments | 3209 | 28% |
| Dyes and coloring matter | 3204 | 18% |
| Artist and school colors | 3213 | 12% |
Note: Basic industrial colorants may fall under lower tax rates depending on use.
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GST Impact on Paint Prices
Since GST for paint is charged at 28%, the final price increases significantly, especially when buying in bulk or purchasing premium brands.
Example:
- Paint Base Price: ₹1,000
- GST @28%: ₹280
- Final Price: ₹1,280
So, if you’re repainting your house, the overall material cost will go up due to this high GST rate.
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GST Compliance for Paint Dealers
- You must charge 28% GST on all invoices
- You can claim Input Tax Credit (ITC) on GST paid for purchases (raw materials, transport, etc.)
- Make sure your bills clearly mention the correct HSN code and GST breakup
Staying compliant ensures smoother operations and helps you avoid tax penalties.
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GST on Industrial Paints
The GST on paints used in the industrial sector (like for machinery, automotive bodies, etc.) also falls under the same 28% bracket. However, businesses can recover this tax through ITC if the paints are used in the course of business or manufacturing.
Are There Any Exemptions?
Currently, there are no GST exemptions on paints. Whether it’s household paint or commercial-grade material, GST is charged without exception.
Conclusion
Understanding gst on paints helps you plan your home projects or business pricing better. Whether you’re a consumer or a dealer, knowing the tax rate ensures you’re not caught off guard at the billing counter.
Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!
Frequently Asked Questions (FAQs)
- What is the GST rate on paints in India?The paint GST rate is 28%, which is applied to most commercial and household paints.
- Are any types of paint exempt from GST?No. All paints—oil, water-based, emulsions, and primers—are taxed under GST.
- Can paint dealers claim Input Tax Credit?Yes. Registered dealers and contractors can claim Input Tax Credit (ITC) on their purchases.
- What is the HSN code for paint under GST?Paints fall under HSN Code 3208, taxed at 28%.
- Does GST apply to painting services?Yes. Painting services are taxed at 18% GST, which is separate from the material cost.
