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.

What is the HSN code for sweets?

Most sweets fall under HSN Code 2106 , while cocoa-based sweets use 1806 .

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.

Are chocolates taxed the same as traditional sweets?

No. Chocolates are taxed at 18% , even if unbranded.

Can sweet shop owners claim Input Tax Credit?

Yes. They can claim ITC on raw materials like milk, sugar, khoya, packaging, and electricity bills.

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.

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GST Rates

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!

Rithesh Bajoriya

Chartered Accountant

MRN No.: 407339

City: Varanasi

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

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.
What is the HSN code for sweets?

Most sweets fall under HSN Code 2106, while cocoa-based sweets use 1806.
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.
Are chocolates taxed the same as traditional sweets?

No. Chocolates are taxed at 18%, even if unbranded.
Can sweet shop owners claim Input Tax Credit?

Yes. They can claim ITC on raw materials like milk, sugar, khoya, packaging, and electricity bills.

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