New GST on Sweets in India: What Confectioners Need to Know
Quick Summary
- The new GST rates for sweets in India will be effective from September 22, 2025, with branded and unbranded sweets taxed at 5%
- Sweets like chocolates and ice creams will have an 18% GST, while items like khoya and unbranded sweets will remain at 5%.
- Small sweet shops selling unbranded sweets may not need to charge GST if their turnover is below ₹40 lakhs.
- Sweet shop owners must register for GST if their turnover exceeds ₹40 lakhs and file regular GST returns.
- Customers will pay 5% GST on loose sweets and 18% on branded packaged sweets, including chocolates and ice creams.
India is a land of celebrations, and no festival or family gathering is complete without sweets. From rasgullas to laddoos, sweets are a major part of Indian culture and commerce. If you’re in the business of selling or buying sweets, understanding the Sweets hsn code and gst rate is essential for proper pricing and billing.
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New GST Rate on Sweets in India
Sweets in India do not all fall under one single GST entry. The applicable rate mainly depends on the product classification, not simply on whether the item is sold loose or in a package. For most traditional sweetmeats under HSN 2106 90, the GST rate is 5%. After 22 Sep 2025, related categories such as chocolates and ice cream also moved to 5% GST.
GST Rate on Sweets
| Type of Sweet Item | Common HSN Code | New GST Rate (After 22 Sep 2025) |
Old GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Traditional sweetmeats such as mithai, laddoo, barfi, peda, rasgulla, gulab jamun | 2106 90 | 5% | 5% |
| Packaged sweetmeats / branded mithai | 2106 90 | 5% | 5% |
| Chocolates and other food preparations containing cocoa | 1806 | 5% | 18% |
| Ice cream, kulfi, frozen desserts / edible ice | 2105 | 5% | 18% |
| Khoya / mawa | 0402 | 5% | 5% |
| Sugar confectionery and many sugar based sweets | 1704 | 5% | 18% or 5%, depending on item |
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(After 22 Sep 2025) 5%
(Before 22 Sep 2025) 5%
(After 22 Sep 2025) 5%
(Before 22 Sep 2025) 5%
(After 22 Sep 2025) 5%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 5%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 5%
(Before 22 Sep 2025) 5%
(After 22 Sep 2025) 5%
(Before 22 Sep 2025) 18% or 5%, depending on item
When is GST on Sweets 5%?
- Traditional Mithai (All Forms): Whether sold loose in a local shop or pre-packaged under a brand name (like Haldiram's or Bikanervala), all traditional Indian sweets such as Gulab Jamun, Rasgulla, and Barfi now attract 5% GST.
- Branded Confectionery: The 5% rate has been extended to include chocolates, candies, and sugar-boiled sweets that were previously in higher brackets.
- Small Vendor Exemption: Small sweet shops with an annual turnover below ₹40 lakhs (for goods) remain exempt from GST registration and do not collect tax.
- Ice Cream: Previously 18%, ice cream and frozen desserts have also been moved to 5%.
When is GST on Sweets 18%?
- Premium Bakery Items: While traditional sweets are 5%, branded cakes, pastries, and premium cookies distributed through retail chains generally fall under the 18% standard rate.
- High-Value Gift Hampers: If a sweet box is sold as part of a composite gift hamper that includes other items (such as expensive nuts, juices, or lifestyle products), the entire hamper may be taxed at 18%, depending on the principal item.
- Non-Dairy Desserts: Certain synthetic or highly processed food preparations not classified as traditional Mithai or Chocolate still attract the 18% GST rate.
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GST Compliance for Sweet Shop Owners
- You must register for GST if your annual turnover exceeds ₹40 lakhs
- Charge 5% or 18% GST depending on how sweets are sold
- Mention correct HSN codes on invoices
- File monthly or quarterly GST returns
- You can claim Input Tax Credit (ITC) on inputs like milk, sugar, packaging, etc.
How to Calculate GST on Sweets
GST on sweets is calculated on the taxable value of the product and the applicable GST rate. For most traditional sweets, chocolates, khoya-based sweets, and ice cream, the working rate is now generally 5%.
GST Amount = Taxable Value × GST Rate
Final Invoice Value = Taxable Value + GST Amount
Example 1: Traditional sweets
Suppose the taxable value of laddoo is Rs 10,000.
GST = 10,000 × 5% = Rs 500
Final Invoice Value = Rs 10,500
Example 2: Chocolates
Suppose the taxable value of chocolates is Rs 5,000.
GST = 5,000 × 5% = Rs 250
Final Invoice Value = Rs 5,250
Example 3: Ice cream
Suppose the taxable value of ice cream is Rs 8,000.
GST = 8,000 × 5% = Rs 400
Final Invoice Value = Rs 8,400
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Impact on Customers
- If you buy loose sweets from a small shop, GST is likely 5% or sometimes not charged at all
- If you buy boxed sweets with branding from large stores, 5% GST is included in the price
- Chocolates, imported candies, and ice creams always attract 5% GST
Conclusion
By understanding how gst on sweets works, you can price your products fairly, bill customers correctly, and stay compliant with tax laws. Whether you’re a buyer or a sweet shop owner, knowing the gst rate on sweets helps avoid confusion during festive shopping!
