New GST on Sweets in India: What Confectioners Need to Know
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 gst on sweets is essential for proper pricing and billing.
New GST Rate on Sweets in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for sweets (no compensation cess).
| Type of Sweet Item | HSN Code | New GST Rate |
|---|---|---|
| Unbranded and loosely sold sweets (sweetmeats) | 2106 | 5% |
| Branded or packaged sweets (food preparations NES) | 2106 | 18% |
| Chocolates and cocoa-based sweets | 1806 | 18% |
| Ice cream, kulfi, frozen desserts | 2105 | 18% |
| Khoya, mawa (milk solids) | 0402 | 5% |
| Sugar and jaggery-based sweets | 1704 / 2106 | 5% or 18% |
Old GST Rate on Sweets
(Old GST Rates – Applicable Until 21st September)
Under the Goods and Services Tax (GST) , sweets are taxed based on how they are classified. Most sweets fall under the 5% or 18% tax bracket, depending on whether they are branded, packaged, or sold loosely.
| Type of Sweet Item | HSN Code | GST Rate |
|---|---|---|
| Unbranded and loosely sold sweets | 2106 | 5% |
| Branded or packaged sweets | 2106 | 18% |
| Chocolates and cocoa-based sweets | 1806 | 18% |
| Ice cream, kulfi, frozen desserts | 2105 | 18% |
| Khoya, mawa (milk solids) | 0405 | 5% |
| Sugar and jaggery-based sweets | 1704 / 2106 | 5% or 18% |
In general, sweets gst rate is 5% for unbranded items and 18% for branded and packaged ones.
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When is GST on Sweets 5%?
- The sweets are made in-house and sold directly (e.g., local mithai shop)
- They are sold loose and not branded or packaged
- The vendor is below the GST registration threshold (₹40 lakhs turnover for goods)
This is common in small sweet shops across cities and villages where traditional sweets are sold by weight and without branding.
When is GST on Sweets 18%?
- They are sold in branded packaging
- They are factory-produced and distributed through retail chains
- The product is labeled with an MRP and brand name
If you’re selling pre-packed boxes of rasgullas, soan papdi, or burfi with a company logo, the higher gst rate on sweets applies.
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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.
Proper classification and invoicing are key to avoiding penalties and audits.
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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, 18% GST is included in the price
- Chocolates, imported candies, and ice creams always attract 18% 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!
As a Chartered Accountant with over 18 years of experience, I have honed my skills in the field and developed a genuine passion for writing. I specialize in crafting insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, my aim is to share valuable insights that resonate with readers.
Frequently Asked Questions
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What is the GST on sweets sold in sweet shops?Sweets GST rate is 5% for loose, unbranded sweets and 18% for branded or packaged ones.
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What is the HSN code for sweets?Most sweets fall under HSN Code 2106, while cocoa-based sweets use 1806.
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Is GST applicable on homemade sweets?Yes, if sold as part of a registered business and branded. Otherwise, small home-based sellers may be exempt if under the GST threshold.
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Are chocolates taxed the same as traditional sweets?No. Chocolates are taxed at 18%, even if unbranded.
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Can sweet shop owners claim Input Tax Credit?Yes. They can claim ITC on raw materials like milk, sugar, khoya, packaging, and electricity bills.