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.

BOOK A FREE DEMO




    GST Rates

    What is the GST Rate on Pencils?

    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%.

    Get a Free Trial – Best Accounting Software For Small Business

    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.

    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.

    Explore a Free Demo of – Best Inventory Management Software For Small Business

    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.

    Frequently Asked Questions (FAQs)

    • What is the GST rate on pencils in India?
      The GST rate on pencils (wooden/graphite) is 12%.
    • 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.
    • Is GST charged on mechanical pencils?
      Yes. Mechanical pencils come under 18% GST.
    • What is the HSN code for pencils?
      Most pencils fall under HSN Code 9609.
    • 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.
    View all FAQs
    Please Wait

    BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.

    phone Sales & Support:

    +91 82 82 82 82 82
    +91 11 - 4096 4096
    Copyright © BUSY Infotech Pvt. Ltd. All Rights Reserved