New GST on Pencils in India: Educational and Non-Educational Use Explained
- 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.
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.
Scan Pencil Barcodes for Accurate Stationery Retail Billing
Join our guided walkthrough to see how BUSY can transform your business operations.
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%) |
Item
HSN Code
GST Rate
Item
HSN Code
GST Rate
Item
HSN Code
GST Rate
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% |
Item
GST Rate
Item
GST Rate
Item
GST Rate
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% |
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
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
Track Pencil Batch Numbers Across Warehouse Stock
* No credit card required
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% |
Item
GST Rate
Item
GST Rate
Item
GST Rate
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.
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.
