Unbranded sweets rate of tax

• Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017, provides the initial framework for GST rates.
• Notification No. 34/2017-Central Tax (Rate) dated October 13, 2017, further clarifies the classification and rates applicable to namkeen and sweets based on branding.

1. The GST rate for most unbranded Indian sweets is 5%. This includes traditional sweets such as laddu, jalebi, etc.
2. Composition Scheme For small manufacturers who opt for the composition scheme, the GST rate can be as low as 1%.
3.  Some specific types of sweets, or branded sweets, fall under a higher GST rate of 18%, particularly those categorized under HSN code 1704.

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The GST rate for HSN code 1704 (which refers to sugar confectionery, including white sugar, candies, and similar products) is 18%. This rate applies to a wide range of sugar-based confectionery items.

However, please note that specific items within HSN 1704 may have different GST rates based on their classification and other details (such as the type of ingredients, processing, etc.). For example, some items may be taxed at a lower rate under exemptions or concessions, such as certain kinds of sweets or bakery products.

GST 54th Council Updates on Namkeen:

Namkeen now cheaper or price cut after reduced the GST on Namkeen items from 18% to 12% by Finance Minister on 10th sept 2024.
The decision on Namkeens, extruded, savoury food items to cut the GST – and now taxes @ 12% instead of 18% prospectively.

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