--- title: "New GST on Sweets 2026: 5% Rate on Indian Sweets, Mithai" description: "New GST rate on sweets in 2026 is 5% on Indian mithai and packaged sweet products. Stay GST-compliant with Busy and apply the correct rate automatically." canonical: "https://busy.in/gst-rates/sweets/" author: "Rithesh Bajoriya" published: "2025-05-15T10:26:04.000Z" category: "GST Rates" --- - 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. # 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 the **Sweets hsn code and gst rate** is essential for proper pricing and billing. ## 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 | **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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%. Live Demo Available Today ## Scan Sweet Pack Barcodes for Faster Festival Season Billing Trusted by 6,00,000+ Users 4.6 Google Rating ## 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. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## **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)](https://busy.in/gst/what-expenses-can-be-claimed-as-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** **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) ## **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! ## About the author **Rithesh Bajoriya** 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? Most traditional sweets sold in sweet shops are generally subject to 5% GST. Packaging or branding alone does not automatically make ordinary sweetmeats taxable at 18%. ### What is the HSN code for sweets? Most traditional sweets generally fall under HSN 2106 90. Cocoa-based sweets usually fall under 1806, ice cream under 2105, khoya under 0402, and some sugar confectionery products under 1704. ### Is GST applicable to homemade sweets? If homemade sweets are sold as part of a taxable business by a registered seller, GST can apply based on the product classification. A small seller below the applicable GST registration threshold may not need to charge GST unless registration becomes mandatory for some other reason ### Are chocolates taxed the same as traditional sweets? Now, in many cases, yes. Chocolates and cocoa-based sweets are generally taxed at 5% GST, similar to many traditional sweets. But the exact classification should still be checked. ### Can sweet shop owners claim Input Tax Credit? Generally, yes, on eligible business inputs such as milk, sugar, khoya, dry fruits, packaging materials, and other taxable inward supplies, subject to normal GST conditions. 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