GST on Diwali Puja Items: Diya, Candles, Lights, Idols, Agarbatti

Updated 28 October 2026 · By Ashok Sachdev · Sources: Notification 9/2025-Central Tax (Rate); Notification 10/2025-Central Tax (Rate); PIB release on the 56th GST Council meeting. Not tax advice; confirm with your CA.

Diwali is on 8 November 2026, so the next ten days are the busiest of the year for a general store, a puja samagri shop or a kirana with a festival corner. One counter, one customer, and four different GST rates on a single bill. People search for "diwali diya hsn code", "clay diya hsn code" and "diwali decoration hsn code" because the item master in their billing app is either blank or wrong. This guide gives the HSN and rate for each common item, a worked bill, and the places where shops usually go wrong.

In short

• 0%: earthen (mitti) diyas and pots, wick for diya, listed puja samagri such as roli, kalava and chandan tika, clay idols.
• 5%: candles, agarbatti and dhoop, safety matches, metal idols (not gold or silver), hawan samagri and rosaries.
• 18%: light strings and lighting fittings, firecrackers, and burning preparations other than agarbatti and dhoop.
• Ask your CA: rangoli colours, camphor (kapoor), brass or decorative metal diyas, and stone or wooden idols.

Rate and HSN table for Diwali puja items

Rakhi (not made of precious metals or gems) is also 0%, if the same shop carries it through the year. The full item-wise pages are on our rate finder: diya, idols, agarbatti, decorative lights, puja samagri and firecrackers.

The traps at the Diwali counter

1. Clay diya is 0%, a decorative diya may not be

The nil rate in Notification 10/2025 is for earthen (clay) lamps and pots under 6912 00 40. Customers also search "decorative diya hsn code" and "brass diya hsn code and gst rate". A painted clay diya is still an earthen lamp. A brass, copper or glass diya is a different material and a different heading, and we do not give a single rate for it. Take the HSN from your supplier's invoice and confirm with your CA before you set it up.

2. Candles went down, light strings did not

Candles were 12% until 21 September 2025 and are 5% now. Matchboxes moved the same way. But the electric jhalar that hangs next to the candles stays at 18%. A single "Diwali decoration" item at one rate will be wrong for one of them.

3. Agarbatti 5%, but not everything that burns

Agarbatti, dhoop batti, lobhan and sambrani are 5%. Other preparations that work by burning (some room fragrance products, for example) are 18%. Check the pack before you pick the rate.

4. Idols depend on material

Clay idols are 0%. Metal idols other than gold or silver are 5%. For idols of stone, marble or wood, two entries overlap in the notifications (one nil, one 5%), so ask your CA which one applies to your stock.

5. Puja thali sets and gift boxes

If you sell a ready thali with diyas, roli, a metal idol and sweets at one price, the mixed items may be treated as a mixed supply and taxed at the highest rate (CGST Act, Section 8). Our guide to Diwali gifts and hampers explains this in detail. Safer habit: sell and bill each item as its own line.

Worked bill (EXAMPLE figures)

A customer in the same state buys six lines before Dhanteras. Prices are before GST.

The invoice total is ₹2,674. The tax splits into CGST and SGST: ₹6 + ₹6 on candles, ₹4.50 + ₹4.50 on agarbatti, ₹30 + ₹30 on the idol and ₹31.50 + ₹31.50 on the jhalar. If the whole bill had been charged at one flat rate of 18%, the tax would be ₹455.40, which overcharges the customer on four of the six lines.

What to put on the invoice

• Zero-rated lines: a nil-rated item is still listed on a tax invoice at 0%. A bill that has only nil items, or if you are under the composition scheme, is different; see bill of supply vs tax invoice.
• HSN digits: Notification 78/2020-Central Tax sets 4 digits on B2B invoices for turnover up to ₹5 crore and 6 digits above that.
• Festival discounts: a discount given on the invoice reduces the taxable value, so tax is on the lower amount. Read GST on discounts before you print "Diwali offer" stickers.
• Old stock: candles and matches bought at 12% and sold after 22 September 2025 are billed at 5%.

If an item is not in this list, use the HSN and GST rate finder or read how to find the HSN code for a product.

How RichPOS helps in the Diwali rush

In RichPOS you save the HSN code and GST rate against each item once. Clay diya sits at 0%, candles at 5%, jhalar at 18%, and the right rate is applied when you add the item to the bill. The invoice shows the tax per line. RichPOS does not choose the HSN for you, so enter it from your supplier's invoice or the table above. Setting up a festival corner in a general store? See billing software for a kirana and grocery store or for a retail shop, and our notes on festival sale promotions.

RichPOS is free for 30 days, then ₹99/month for the first 3 months, then ₹199/month or ₹1,999/year. No GST is added to these prices. Start your free 30 days.

Rates checked on 28 October 2026 against Notification 9/2025-Central Tax (Rate), Notification 10/2025-Central Tax (Rate) (both dated 17 September 2025, in force 22 September 2025) and PIB, 56th GST Council, Annexure I. The brass-diya, rangoli, camphor and stone or wooden idol points are open questions, not rates. This is general information, not tax advice.