BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Sugar is a common ingredient in every Indian kitchen and a major component in food processing industries. But how does GST affect its pricing? Whether you’re a consumer, retailer, or in the food business, knowing the gst on sugar helps you stay informed and compliant.
Sugar is taxed under the Goods and Services Tax (GST) system based on its form—raw or processed.
| Type of Sugar | HSN Code | GST Rate |
|---|---|---|
| Raw sugar | 1701 | 5% |
| White refined sugar | 1701 | 5% |
| Processed sugar (packaged and branded) | 1701 | 5% |
| Jaggery (gur) – not branded | 1701 | Exempt |
| Jaggery (branded & packaged) | 1701 | 5% |
The standard gst rate on sugar is 5%, which applies to both loose and packaged sugar unless specifically exempted.
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If you’re in the food or beverage industry, sugar is treated as a raw material. You pay 5% GST and can claim Input Tax Credit on it if registered.
For example, biscuit makers, juice producers, and sweet shops using sugar can offset this tax.
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| Product | GST Rate |
|---|---|
| Sugar (all types) | 5% |
| Jaggery (loose) | 0% (Exempt) |
| Jaggery (branded) | 5% |
| Sugar substitutes (aspartame, sucralose, stevia) | 18% |
So if you’re a diabetic or health-conscious buyer opting for substitutes, be aware of the higher tax.
Understanding how gst on sugar works helps not just households but also traders, manufacturers, and food businesses handle costs better and follow the right billing practices.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.