New GST on Pencils in India: Educational and Non-Educational Use Explained
Pencils are one of the most basic yet essential tools used in schools, offices, and homes. Whether you’re a parent buying for your child or a business supplying stationery, knowing the gst on pencil helps in budgeting and tax planning. Let’s understand how pencils are taxed under the Goods and Services Tax (GST) in India.
New GST Rate on Pencils in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for pencils and closely related items (no compensation cess).
| Item | HSN Code | GST Rate |
|---|---|---|
| Graphite pencils (wooden) | 9609 | 12% |
| Colour pencils (for art / education) | 9609 | 12% |
| Mechanical / clutch pencils (propelling or sliding) | 9608 | 18% |
| Pencil sharpeners | 8214 | 18% |
Note: Items historically at 18% (e.g., HSN 9608/8214) are expected to remain at 18%. Wooden and colour pencils under HSN 9609 have been at 12%; any change under a future two-tier structure (5%/18%) will depend on the final notification. Until then, treat them as 12%.
New GST on Pencil Accessories
If you’re selling or buying related items like sharpeners or erasers, note that they don’t share the same tax rate as wooden pencils.
| Item | GST Rate |
|---|---|
| Sharpeners | 18% |
| Erasers | 18% |
| Pencil boxes / cases | 18% |
Tip: Use correct HSNs on invoices (e.g., sharpeners under 8214; erasers commonly at 18%). Mechanical pencils fall under HSN 9608 at 18%, while wooden/colour pencils are under HSN 9609 at 12%.
What is the Old GST Rate on Pencils?
(Old GST Rates – Applicable Until 21st September)
The gst rate on pencils depends on the type and purpose of the pencil. Broadly, pencils are considered educational tools and attract a lower GST rate.
| Product | HSN Code | GST Rate |
|---|---|---|
| Graphite pencils (wooden) | 9609 | 12% |
| Pencil sharpeners | 8214 | 18% |
| Mechanical pencils (clutch pencils) | 9608 | 18% |
| Color pencils (for art or play) | 9609 | 12% |
So, for standard wooden graphite pencils used by students, the pencil GST rate is just 12%.
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Why Are Educational Pencils Taxed at a Lower Rate?
Pencils used for writing and education are considered basic learning tools. To keep them affordable, the government placed them under a lower tax slab. This includes:
- School pencils
- Drawing pencils for students
- Office-use graphite pencils
However, decorative or high-end pencils may fall into higher tax brackets depending on how they’re packaged or sold.
GST on Mechanical and Colored Pencils
Not all pencils get the same rate. Here’s how it differs:
- Mechanical pencils (like clutch pencils) attract a GST of 18%
- Color pencils also fall under HSN 9609, generally taxed at 12%, but if packaged with toys or art kits, they may attract higher rates
Understanding these categories helps retailers price their stationery items correctly and maintain GST compliance .
Old GST on Pencil Accessories
If you’re selling or buying related items like sharpeners or erasers, note that they don’t share the same tax rate as pencils.
| Item | GST Rate |
|---|---|
| Sharpeners | 18% |
| Erasers | 18% |
| Pencil boxes/cases | 18% |
Input Tax Credit for Stationery Dealers
- You must charge GST as per the applicable rate (12% or 18%)
- You can claim Input Tax Credit (ITC) on the GST paid when buying stock
- Ensure your GST invoices have the correct HSN code and tax breakup
Keeping your records GST-compliant helps in smooth return filing and avoiding penalties.
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Conclusion
Whether you’re buying for school, stocking your store, or exporting stationery, knowing the gst on pencil ensures proper cost planning and tax filing.
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions
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What is the GST rate on pencils in India?The GST rate on pencils (wooden/graphite) is 12%.
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Are color pencils taxed the same as regular pencils?Usually, yes—color pencils are taxed at 12%, but if sold as part of an art kit, rates may vary.
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Is GST charged on mechanical pencils?Yes. Mechanical pencils come under 18% GST.
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What is the HSN code for pencils?Most pencils fall under HSN Code 9609.
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Can stationery shop owners claim Input Tax Credit?Yes, as long as they are registered under GST and maintain proper invoices, they can claim ITC on purchases.