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.

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    GST Rates

    GST Rate on Sweets

    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!

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