---
title: "New GST on Pencil 2026: 5% Rate on Pencils, Crayons & Stationery"
description: "New GST rate on pencils in 2026 is 5% on all pencils, crayons, colour pencils and art stationery. Use Busy to auto-apply the correct GST on every invoice."
canonical: "https://busy.in/gst-rates/pencil/"
author: "Jagdish Prasad"
published: "2025-05-15T09:57:00.000Z"
category: "GST Rates"
---

-   The GST rate on pencils in India is **Nil (0%)** for applicable pencil products.
-   Pencils used for education purposes and general use are covered under the applicable Nil-rated classification.
-   Mechanical pencils and accessories should be checked based on their specific HSN classification.
-   Retailers must use correct HSN codes on invoices to ensure GST compliance and proper pricing.
-   Stationery dealers can claim eligible Input Tax Credit on GST paid for taxable supplies, subject to applicable conditions.

# 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)](https://busy.in/gst/)  in India.

## New GST Rate on Pencils in India

The revised GST rates applicable from **22 September 2025** are provided below for pencils and closely related items (no compensation cess applicable).

| Item | HSN Code | GST Rate |
| --- | --- | --- |
| Graphite pencils (wooden) | 9609 | **Nil (0%)** |
| Colour pencils (for art / education) | 9609 | **Nil (0%)** |
| Mechanical / clutch pencils (propelling or sliding) | 9608 | **Nil (0%)** |

**Note:** Pencil sharpeners are classified separately and their GST rate depends on the applicable HSN classification.

## 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 stationery items have the same GST classification. Under the revised GST structure:

-   **Mechanical pencils (like clutch pencils)** are taxed at **Nil (0%) GST** under the applicable classification.
-   **Colour pencils** also attract **Nil (0%) GST** under the applicable HSN classification.

Understanding these categories helps retailers price their stationery items correctly and maintain GST compliance.

## Old GST on Pencil Accessories

If you were selling or buying related items like sharpeners, erasers, or pencil cases, note that these products had separate GST classifications from 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 HSN classification and GST rate**.
-   You can claim **eligible Input Tax Credit (ITC)** on GST paid when buying stock, subject to applicable GST conditions.
-   Ensure your GST invoices have the correct HSN code and tax breakup.

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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.

## About the author

**Jagdish Prasad**

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

### What is the GST rate on pencils in India?

The GST rate on **wooden/graphite pencils is Nil (0%)** under the revised GST structure.

### Are color pencils taxed the same as regular pencils?

Yes. **Colour pencils are also taxed at Nil (0%) GST** under the revised GST structure. If sold as part of a mixed art kit, the applicable GST rate may depend on the classification of the complete product.

### Is GST charged on mechanical pencils?

No. **Mechanical pencils (propelling or sliding pencils) are Nil-rated (0% GST)** under the revised GST structure.

### 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.

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